- Entry into the UK battery storage market gathers speed for 4 Renewable Energy, the independent power producer arm of French investment management company RGREEN INVEST
- 4 Renewable Energy brings on board Santander UK with £27m funding support
- 4 Renewable Energy’s first UK battery storage facilities will be operational later this year
4 Renewable Energy has strengthened its position in the UK battery storage market by bringing on board Santander UK for funding support.
Santander UK has provided a £27m funding package to 4 Renewable Energy, the independent power producer (IPP) arm of RGREEN INVEST, an independent French investment management company specialised in equity investments and financing for energy transition and climate change adaptation infrastructure projects. The funding supports construction and operations of four new-build battery storage facilities in England that 4 Renewable Energy acquired last year.
The 107 MW/MWh portfolio of four lithium iron phosphate, in-front-of-the-meter new battery energy storage system assets, which were developed by UK company Arlington Energy, is due for completion later this year. The new facilities comprise Back Lane in Chesterfield, Gipsy Lane in Rochdale, Ernesettle in Plymouth and Potmans Lane in Bexhill on Sea.
Owned 100% by RGREEN INVEST’s INFRAGREEN IV fund, 4 Renewable Energy has plans to expand its UK portfolio beyond its first four battery storage facilities. It is actively pursuing additional battery storage projects under development or ready-to-build in the UK and is establishing a local team. RGREEN INVEST’s managed entities have invested in more than 1,500 renewable energy projects to date and in large battery storage facilities in France - on the mainland and overseas. 4 Renewable Energy has wind, solar and battery storage projects under development and construction in Spain, Bulgaria, Portugal, Romania and Poland. Its portfolio of renewable energy projects totals more than 1.5 GW.
Battery storage is key to ensuring the UK’s homes and businesses can be powered by renewable energy. It plays an important role in boosting the nation’s capability to capture, store and release renewable energy, providing a more reliable and regular supply.
Since the start of 2019, Santander UK has committed more than £250m to the battery storage sector. This funding is part of Santander’s global target to lend €120bn in green finance to businesses throughout the world by 2025. The funding package provided to 4 Renewable Energy was partly financed by Santander UK’s Environmental and Social Growth Fund, which is designed to support lending that benefits the environment or society and contributes toward the UK’s sustainability agenda.
Sébastien Rondel, Head of Direct Investment for RGREEN INVEST and Director of 4 Renewable Energy, said: “This is our first venture into the UK market, and we are excited to be an active player. Our banking partner, Santander UK, has greatly supported this venture and is helping us pursue our strategic development abroad. Our choice of the UK is significant as the nation has made an ambitious decision to accelerate its transition to renewable energy sources, and battery systems are poised to become a key component of this strategy’s success.”
Mark Cumbo, Director, Specialised and Project Finance at Santander UK said: “We are delighted to support RGREEN INVEST’s entry into the UK renewables market with funding for the construction of its four battery storage facilities. Santander UK strongly supports clients such as RGREEN INVEST that are bringing positive environmental change to the UK’s energy sector, and we are delighted to provide funding for these new battery storage facilities throughout England.”
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Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 31 December 2021, the bank had around 19,200 employees and serves around 14 million active customers, via a nationwide branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers’ eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
4 RENEWABLE ENERGY Founded in 2020 by RGREEN INVEST’s highly experienced team in renewable energies, 4 RENEWABLE ENERGY (4RE) is a fast-growing European Independent Power Producer, committed to renewable energy transition and climate adaptation. 4RE aims to develop and operate renewable power stations that contribute to power systems in phase with their needs and beyond classic generation. Currently, 4RE has more than 15 projects under construction and development (c. 1,500 MW) across Europe.
RGREEN INVEST Founded in 2013, RGREEN INVEST is an independent French investment management company, and “entreprise à mission” with a proven track record in investing and financing the energy transition and adaptation to climate change. Among the first players to offer a complete range of bespoke financial solutions, RGREEN INVEST serves the energy transition in Europe with entrepreneurial passion. With more than thirty experienced professionals, whose expertise span fund management, investment banking, asset-management, and renewable energy, RGREEN INVEST boasts one of the broadest teams of specialists in financing energy transition-related infrastructure projects in France. Extremely mindful of climate issues, the company enshrines robust ESG principles into its investment criteria, enabling institutional investors to take part in the energy transition while sharing the financial gains. With over 1.4 billion euros under management, RGREEN INVEST contributes to the financing of projects in Europe and abroad equivalent to a total installed capacity of more than 3.3 GW* to date, thus avoiding nearly 550,000 tons of CO2 emissions in 2020**.
RGREEN INVEST’S INVESTMENT STRATEGIES ARE OPEN TO PROFESSIONAL INVESTORS ONLY
* Source: RGREEN INVEST. GW stands for gigawatt of installed capacity of financed plants, with the support of other financing sources.
**Source: RGREEN INVEST. Estimates based on an internal calculation methodology. Note that the quantity of avoided emissions attributable to a renewable energy project financed by RGREEN INVEST depends significantly on the emission factor of the country in which the project is located. Where renewables replace fossil fuel capacity, particularly coal-fired power plants, the emissions avoided will be significant. Avoided emissions also depend on the renewable technologies deployed. This parameter explains why the avoided emissions of wind power are more important than those of solar power, even though the proportion of these two technologies is comparable in the RGREEN INVEST portfolio.