Global investment manager Quinbrook Infrastructure Partners has announced the close of a ‘record’ debt financing of £238.5 million ($309.43 million) for what it touts as the largest solar and battery storage project in the UK.

Quinbrook’s Managing Director and UK Regional Leader Keith Gains calls the project a model for the development and financing of future large-scale projects in the UK.

Cleve Hill Solar Park with its 373 MW solar and 150 MW battery energy storage system (BESS) capacity is the 1st to be consented as a Nationally Significant Infrastructure Project. Under construction since mid-2023, the project is expected to become operational in 2025.

Quinbrook says the project financing is also the largest solar and battery project financing ever closed in the UK. It comprises a £218.5 million ($283.5 million) term loan and a £20 million ($26 million) value added tax (VAT) facility, provided by NatWest and Lloyds.

Located in Kent, the project is one of the winners of the UK government’s allocation round 4 of the Contracts for Difference (CfD) auction scheme. It benefits from a 15-year capacity market agreement (CMA) for the BESS component, which brings the total contracted and index-linked revenues for the project to over £480 million ($622.7 million). Tesco PLC has signed up to offtake 65% of the project’s solar generation.

Quinbrook says the revenue contracts secured for the project are critical to underwriting the project financing.

“When this project was envisioned over five years ago, we knew solar + battery storage projects of this scale would play a critical role in accelerating the UK’s transition and Cleve Hill is a prime example of how strategic investments can enhance national energy infrastructure,” added Rory Quinlan, Quinbrook’s Co-Founder and Managing Partner.

With a focus on solar and storage co-located projects, Quinbrook recently launched a new long-duration BESS solution with 8-hour capacity, in collaboration with China’s CATL.