Renewable Energy M&A: Key UK BESS Developer Announces Asset-Sale Amid Shifting Market Dynamics!

published on 09 June 2024

Harmony Energy Income Trust plc plans to sell a partial or full stake in its battery energy storage systems (BESS) portfolio, with JLL as advisor.

⚡️Portfolio Highlights:

– Operational: 5 BESS projects totaling 277.5 MW / 555 MWh across Yorkshire, Kent, and Buckinghamshire.

– New Projects: Recently commissioned 35 MW / 70 MWh project and 82.9 MW / 165.8 MWh under construction, operational this year.

📈 Strategic Goals:

– Deliver short-term value to shareholders.

– Reduce gearing to enhance financial leverage.

– Capitalize on market dynamics and historic BESS transaction trends.

🎯 Market Insights:

– PE firms/PE-backed players have dominated ~50% of BESS deals in the UK since 2022, especially ready-to-build and under-construction projects.

– However, their acquisition activity has recently dipped, primarily due to declining revenue potential as the ancillary services market saturates

– The resulting vacuum has opened doors for IPPs and private players to step up acquisition activity

– Harmony’s historic sale activity to these groups also aligns with these trends

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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