Cleve Hill Solar Park is also the first to be considered as a Nationally Significant Infrastructure Project. The 373 MW solar + 150 MW battery energy storage system (BESS) in Kent are expected to commence operations in 2025.
The project financing consisted of a £218.5 million term loan and a £20 million VAT facility has been provided by Lloyds and NatWest. It is the largest solar + battery storage project financing ever closed in the UK and was arranged in two tranches, with the term loans for the solar PV completed in August 2024 and for the BESS facility in March 2025.
“Cleve Hill is a model for the development and financing of future large-scale projects in the UK that can meaningfully support the country’s decarbonisation goals while spurring economic growth and long-term job opportunities for local communities” said Keith Gains, Managing Director and UK Regional Leader for Quinbrook. “The record-breaking financing secured is the latest milestone for this flagship project and our success here is a testament to the hard work and close collaboration of the Quinbrook and Private Energy Partners teams and our lending partners.”
The revenue contracts secured for the project are critical to underwriting the project financing. In addition to securing the largest award for a UK solar project in Round 4 of the government’s 15-year Contract for Difference auction scheme and the landmark offtake agreement with Tesco PLC for 65 percent of the solar generation, the project will also benefit from a 15-year Capacity Market Agreement for the BESS. This agreement ensures that the project is compensated for having its power generation capabilities ready and available during periods of high demand, enhancing grid reliability. The Capacity Market Agreement brings the total contracted and index linked revenues for the project to over £480 million.
“This landmark energy infrastructure project is another boost to the UK’s attractiveness as a destination for investment” added James Taylor, Head of Infrastructure & Project Finance at Lloyds. “As one of the UK’s largest retail and commercial banks, we work with businesses across the country to provide our support for projects that will help to deliver economic growth, provide energy security, and create jobs.”
Cleve Hill was granted development consent in May 2020 and is expected to help reduce carbon emissions by more than 142,000 tonnes in the first year of operations while also seeking to deliver a net gain of over 67 percent in biodiversity. The project is also expected to support over 2,500 direct and indirect jobs over its lifetime and generate more than £114 million in local socio-economic benefits.
For additional information:
