Natpower is understood to have closed a revolving borrowing base facility with Kommunalkredit to finance the development costs of a near-10 GW UK battery storage pipeline.

Company documents suggest that the financing will, at least initially, be used to fund further development of a host of BESS assets which are either in pre-planning or in their planning phase.

The pipeline is believed to include the 1 GW Bellmoor project in North Yorkshire which has a grid connection date of 2033 and has recently had a planning application submitted to the local council.

Other assets in the portfolio include the 1 GW Mowbray (North Yorkshire, grid date 2033, in planning), 1 GW Gwyddelwern (Denbighshire, 2037, pre-planning), 1 GW Navenby Lincolnshire, 2034), 500 MW Connah’s Quay (Flintshire, 2037), 1 GW Teesside (Tees Valley, 2035, in planning), 1.3 GW Dalby (Nottinghamshire, 2034, pre-planning), and the 1.8 GW Enderby (Northamptonshire, 2037), among others.

Borrowing base facilities from Kommunalkredit are typically sized at approximately EUR 20m-40m and can be structured to lend against future cash flows and to allow incremental drawdowns once milestones – such as planning consent – are achieved.

Typical deals of this class are priced with 6%-10% interest rates, although the precise figure will depend on the quality and make-up of a given pipeline.

Natpower and Kommunalkredit were contacted for comment.

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