At financial close, Thorpe Marsh represented the largest standalone BESS project financing globally and the largest project of its kind in Europe [1]. It represents a significant milestone in the development of the European BESS market and marks MUFG's second successfully completed storage financing in the EMEA region, reinforcing the bank's growing presence in the sector.
With the rapid growth of renewable energy generation, there is a rising demand to expand BESS capacity to support grid stability and flexibility. Once complete, Thorpe Marsh is expected to play a critical role in strengthening the UK's energy system, as it is expected to deliver over 2 million MWh annually, enough to power up to 785,000 homes during periods of peak electricity demand.
The Challenge
Given the relative novelty of the BESS market in EMEA, several elements sit on the critical path to bankability, particularly for large‑scale projects such as Thorpe Marsh. These include the robustness of revenue risk mitigation mechanisms and technological considerations related to long‑term battery performance and degradation.
Due to the project's complexities and scale, Fidra Energy required experienced partners with sector expertise and a track record of developing and financing complex transactions to support its flagship Thorpe Marsh project.
Execution
Leveraging its strong balance sheet, deep project finance expertise, international experience in financing complex BESS projects, and long‑standing relationship with EIG, MUFG played a key role from the outset in supporting the project towards bankability. Drawing on its strong agency capabilities and deep experience in managing complex multi‑lender project finance transactions, MUFG supported the transaction as Agent Bank and Security Trustee, in addition to its roles as Mandated Lead Arranger and Hedge Provider.
Merchant risk was mitigated through a balanced and diversified revenue profile, combining government‑backed income with long‑term commercial arrangements that materially reduce exposure to market volatility. This was complemented by a robust contractual framework anchored by experienced, tier‑one counterparties, which provides a high degree of construction certainty and helps mitigate operational and technology risk.
The support, industry experience and project delivery capabilities of Fidra Energy's shareholders across large-scale infrastructure investments also provided a strong foundation for the transaction and underpinned a robust project structure.
A £594 million senior debt package provided by a consortium of 13 international banks was complemented by £445 million of equity capital from the National Wealth Fund and EIG. This equity commitment strengthened the robustness of the overall financing structure and supported lenders' confidence.
Results
The successful financing of Thorpe Marsh in September 2025, given its scale and structural complexity, illustrates the increasing maturity of the UK BESS market and demonstrates MUFG's ability to structure projects that attract strong interest from a broad range of international investors.
Walid Mouawad, Global Head of Energy Transition, EIG, said:
" Thorpe Marsh represents a significant milestone for Fidra Energy and, we believe, marks an important step in the wider UK energy transition. Delivering a financing of this scale required lenders with deep sector expertise, strong execution capabilities and a willingness to support innovative infrastructure solutions. MUFG played an important role throughout the process, helping structure a financing that attracted a broad syndicate of international banks and positioned the project for long-term success. We appreciate MUFG's partnership in helping to bring this significant European battery storage project to financial close."
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