Quinbrook Infrastructure Partners (“Quinbrook”), a specialist global investment manager focused exclusively on the infrastructure needed for the energy transition, today announced it has closed £120 million in new debt financing for a portfolio of five synchronous condenser projects. This is the first portfolio financing of synchronous condensers that were awarded contracts in Phases I and II of National Grid’s Stability Pathfinder Programme.
“Grid stability is a critical necessity for achieving a secure transition to a decarbonised power system and synchronous condensers are an innovative solution to address fundamental system needs,” said Keith Gains, Managing Director and UK regional lead for Quinbrook. “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.”
The financing was led by a consortium of Siemens Financial Services through Siemens Bank, NatWest and NORD/LB.
Included in this portfolio financing is Quinbrook’s first synchronous condenser, located at Rassau in Wales. This first project was awarded a contract by National Grid in Phase I and has exceeded all operational targets since completion in 2022. Also included is Quinbrook’s “Scottish Portfolio” of four synchronous condensers, which were awarded contracts in Phase II and are located near Gretna, Neilston, Rothienorman and Thurso. The Scottish Portfolio broke ground in 2023 and is expected to complete all construction works and commence operations by the end of this year.
The projects, developed in partnership with Welsh Power, are supported by availability based fully inflation linked revenues under contract with National Grid for a period of up to 10 years.
Gains added, “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.”
Advisors to Quinbrook were Norton Rose Fulbright (legal), Fichtner (technical), Lockton (insurance) and BDO (model audit).
