Quinbrook Infrastructure Partners, a specialist global investment manager focused on the infrastructure needed for the energy transition, announced it has closed £120 million in new debt financing for a portfolio of 5 synchronous condenser projects. And this is the first portfolio financing of synchronous condensers awarded contracts in Phases I and II of National Grid’s Stability Pathfinder Programme.
The funding was led by a consortium of Siemens Financial Services through Siemens Bank, NatWest, and NORD/LB. This portfolio funding includes Quinbrook’s first synchronous condenser, located at Rassau in Wales. National Grid awarded this project a contract in Phase I and has exceeded all operational targets since completion in 2022.
Also included is Quinbrook’s “Scottish Portfolio” of 4 synchronous condensers, which were awarded contracts in Phase II and are located near Gretna, Neilston, Rothienorman, and Thurso. The Scottish Portfolio broke ground last year and is expected to complete all construction works and commence operations by the end of this year.
These projects, developed in partnership with Welsh Power, are supported by availability-based fully inflation-linked revenues under contract with National Grid for up to 10 years.
Norton Rose Fulbright (legal), Fichtner (technical), Lockton (insurance), and BDO (model audit) advised Quinbrook for this deal.
KEY QUOTES:
“Grid stability is a critical necessity for achieving a secure transition to a decarbonized power system, and synchronous condensers are an innovative solution to address fundamental system needs. Quinbrook has assembled the largest privately owned portfolio of synchronous condensers located across the UK that will allow National Grid to control system frequency and maintain grid stability as more renewables capacity is added to the UK power system.”
“We are very pleased with the successful close of this financing and are grateful for the strong support from both existing and new financing partners who recognise the real impact these investments provide in supporting the UK energy transition.”
- Keith Gains, Managing Director and UK regional lead for Quinbrook
