CMS advises Cero Generation on financial close of 198 MW Bumble Bee Co-Located Renewable Energy Project
CMS has advised Cero Generation, a leading independent power producer (IPP), on the successful financial close of the 198 MW Bumble Bee Project, a co-located utility scale solar PV and battery energy storage project, connecting to the West Burton substation near Doncaster in the UK.
The project will deliver 78 MWp of solar PV generation together with a 120 MW battery energy storage system (BESS), strengthening Cero’s UK portfolio and supporting the delivery of reliable, low carbon electricity generation alongside flexible energy storage capacity.
Financial close has been reached with a group of lenders including ING, NORD/LB, Rabobank and Santander UK. This is the second project to be financed through Cero’s Gemini portfolio facility, following the financial close of the 115 MW Bramley project last summer on which CMS also advised. That project is now under construction.
Revenues for a portion of the battery will be secured by a long-term tolling agreement with ENGIE. Under the 10-year agreement, ENGIE will optimise 70MW / 140MWh battery capacity, further strengthening its position in the UK flexibility and energy management market. This is Cero’s first Tolling Agreement and the first Tolling Agreement signed on a co-located asset in the UK. EDF will provide optimisation services for the remainder of the battery and route-to-market services for the solar PV.
Construction of the Bumble Bee Co-Located Renewable Energy Project is expected to begin in the coming months. Cero will work with Metlen, the appointed engineering, procurement and construction contractor, to deliver the project. JA Solar will supply the solar panels, and Sungrow Power will supply the BESS.
Declan Deasy, Chief Executive Officer of Cero Generation, said: “Reaching financial close on the Bumble Bee Co-Located Renewable Energy Project is an important milestone for Cero and reflects the continued confidence of our lending partners in our UK portfolio and delivery capability. With Bumble Bee now at financial close, we are on track to achieve our target of over 1GW of projects in operation across our core markets.”
Bill Rees, Managing Director of Enso Energy, commented: “This project also shows why co-location is essential. By constructing solar and battery storage in parallel behind one grid connection, we deliver more capacity, faster and more efficiently, exactly what CP30 is intended to achieve.”
CMS’s advice was led by Energy Finance partner Nicholas Ross-McCall, and Energy & Climate Change partners Louise Dalton (advising on the revenue arrangements) and Phil Duffield (on the construction arrangements).
Nicholas Ross-McCall comments: “Congratulations to the Cero Generation team who we were honoured to work with again on all key aspects of the development and financing of this large co-location project, now housed within the Gemini portfolio facility, and which cements Cero’s position as a provider of clean and flexible energy solutions, contributing to UK grid resilience.”
Louise Dalton adds: “We are delighted to support Cero on this innovative and market-leading project, representing the first co-located toll to be contracted”
Phil Duffield adds: “This project is another important milestone in the deployment of co-located solar and BESS in the UK and builds on the extensive experience of CMS across both of these sectors.”
