Econergy Drives UK Battery Storage Growth with £21M Santander Financing and EDF Partnership

Econergy Renewable Energy Ltd. (TASE: ECNR), a leading European independent power producer, today announced that it has reached financial close on the Dalmarnock 40MW / 120MWh battery energy storage system (BESS) project in Scotland. The Company has secured £21 million of project finance from Santander UK and entered into a long-term optimisation partnership with EDF, a leading provider of battery optimisation services.

The transaction represents a significant milestone in Econergy’s UK storage strategy and demonstrates the Company’s continued transition from developer to operational IPP. It validates the bankability of Econergy’s standalone storage portfolio and its ability to attract top-tier financing partners to support long-term asset ownership.

The Dalmarnock project is supported by a long-term optimisation agreement with EDF, providing a guaranteed minimum income level that enhances revenue visibility and cash flow certainty, while allowing Econergy to retain full upside exposure above the floor. The structure combines downside protection with participation in market volatility, in line with Econergy’s strategy to maximise risk-adjusted returns from operational storage assets.

Eyal Podhorzer, CEO of Econergy, said: "The Dalmarnock financial close is a testament to our execution strategy converting our deep development pipeline into revenue-generating operational assets. By partnering with Santander and EDF, we have not only secured capital efficiency but also engineered a revenue structure that provides long-term visibility while maintaining exposure to the upside of the UK’s energy transition.”

This milestone paves the way for the broader commercialization of Econergy’s strategic UK pipeline, which currently comprises 17 projects totalling nearly 3 GW.

Claire Heaton, Associate Director, Structured & Specialist Finance at Santander UK, added: “We are pleased to be supporting Econergy with its latest BESS project in Dalmarnock, which strengthens its position in the energy storage sector. Dalmarnock is the first 3-hour duration asset Santander UK has funded, and we look forward to working with the team going forward as they advance their strategic goals, and continue to contribute to the UK’s energy transition.”

Stuart Fenner, Commercial Director at EDF’s Wholesale Market Services, commented: "EDF is proud to support Econergy on the Dalmarnock project, a key step in our mission to help electrify Britain. By providing a reliable revenue foundation, this project makes it easier to use more renewable energy and shows how working together can speed up the UK’s clean energy transition.”