Watson Farley & Williams (“WFW”) advised Banco Santander (“Santander”) and Sumitomo Mitsui Banking Corporation (“SMBC”) on a €100m senior non-recourse project financing granted to special purpose vehicles (“SPVs”) owned by Grenergy Renovables (“Grenergy”) for its 155 MW/620 MWh battery energy storage system (BESS) cluster in Oviedo, Asturias, northern Spain.
The transaction represents the first standalone BESS project financing in Spain and marks a major milestone in the development of the country’s energy storage sector. The financing is structured as an eight-year mini-perm facility and will support the construction and operation of the project. The Oviedo cluster is one of the most significant battery storage projects currently being developed in Spain and is backed by a 10-year structured power purchase agreement with a leading European utility commencing in January 2028, providing a robust long-term revenue framework for the asset.
Spanish-headquartered Grenergy is a leading independent renewable energy company specialising in the development, construction and operation of solar PV and battery energy storage projects.
Santander and SMBC are leading international financial institutions with extensive global banking and financing capabilities. Santander is one of the world’s largest banks by market capitalisation, whilst SMBC is a global financial group with a presence across 40 countries, providing corporate and investment banking and structured finance solutions to clients worldwide.
The WFW Madrid Energy team advising the banks was led by Finance Partner Juan Vicente Barquilla, supported by Senior Associate Jacobo Hermidas and Associates Álvaro del Real and Cristina Álvarez. Regulatory advice was provided by Partner Lidia Fernández, Senior Associate Ignacio Soria and Associate Miguel Rubio. London Projects Partners Paul A. Simpson and Jean-Pascal Boutin assisted on matters of English law.
Juan Vicente commented: “We are delighted to have advised Santander and SMBC on this landmark transaction. As Spain’s first standalone BESS project financing, the Oviedo cluster sets an important precedent for the energy storage market and demonstrates the increasing maturity and bankability of standalone battery storage projects. The successful closing further reinforces WFW’s position as a leading adviser on BESS financings in Europe and highlights the combination of strengths that made the transaction possible: Santander’s and SMBC’s extensive experience in storage financings across multiple jurisdictions, Grenergy’s international track record in BESS development and WFW’s deep expertise in complex energy transition financings”.
Grenergy was advised by Clifford Chance.
