CMS advises on bespoke solar and BESS co-location cluster financing

CMS has advised Cero Generation, a leading independent power producer (IPP), on the development (in partnership with Enso Energy) and financing of the Larks Green cluster, supporting the UK’s Clean Power 2030 ambitions. The debt package, provided by a consortium of international lenders, includes refinancing for the operational Larks Green Solar 70MW farm and Larks Green BESS 50MW project and new financing for the construction of the Lower Larks 70MW/140 MWh BESS project.

Larks Green Solar commenced operations in 2023 and produces enough clean, sustainable electricity to power over 17,000 homes, while Larks Green BESS, which has been operational since 2024, provides critical flexibility and stability for the local grid. Lower Larks BESS represents the next phase of the cluster and is currently under construction, with operations expected to commence in 2027.

The Lower Larks project secured a new long-term optimisation agreement with Danske Commodities, providing market access and revenue optimisation services throughout the term.

The financing of the Larks Green cluster will further boost Cero Generation’s solar and BESS portfolio, which is expected to reach 207MW and 345MW, respectively, once all projects are live.

Andrew Alkiviades, Director of Commercial Delivery at Cero Generation, said: “The financing of the Larks Green cluster marks another important milestone in Cero’s ability to deliver multiple utility-scale solar and BESS projects. The project is particularly significant as it combines operational and construction-stage assets at a single location, supported by a diversified revenue profile and market-leading offtakers. We are excited to continue expanding our UK pipeline, and partnering with trusted, experienced lenders is instrumental in delivering this growth at the pace required.”

Bill Rees, Managing Director at Enso Energy, said: “This Financial Close marks another important milestone for the Larks Green cluster and highlights the value of co-locating solar and battery storage to make the best use of existing grid infrastructure at the Iron Acton substation.”

Nicholas Ross-McCall, Energy Finance Parter at CMS, comments: “Congratulations to the Cero Generation team on achieving financial close on this complex co-location financing, which included a bespoke mixture of operational and in-construction projects within the Larks Green cluster, and a mixture of new money and refinancing. The deal again showcases CMS’ expertise in BESS and co-location financing, and the bankability of the project documents underpinning that financing.”

The CMS team was led by Nicholas Ross-McCall, with Energy & Climate Change Partners Louise Dalton and Phil Duffield advising on the revenue arrangements the construction arrangements, respectively.