SAE Renewables (LON:SAE) is further progress towards a cleaner energy future, thanks to a significant financial boost that supports the early stages of its ambitious battery energy storage projects. In a recent note from Longspur Research, analyst Adam Forsyth highlights how a timely £8.5 million loan from Cardiff Capital Region’s Strategic Premises Fund is helping the company firm up progress on its 240MWh AW1 battery energy storage system (BESS) project.
This early funding allows SAE Renewables to get ahead of the game by securing long lead items, including the crucial 132kV transformer. With persistent supply chain challenges, this strategic move adds welcome certainty to the project timeline and lays the groundwork for a successful financial close in the coming months.
Forsyth sees this development as pivotal, stating, “We see this new loan as providing a key element of de-risking adding to the recent win in the Capacity Market auction.” His insight underscores the growing investor confidence in SAE’s forward-looking energy infrastructure strategy.
Another promising sign for the future is that this isn’t just a one-off investment. The second tranche of the loan will be unlocked once the 500MWh AW2 project obtains planning approval, expected later this year. Importantly, grid connections — a common stumbling block in battery storage — are already secured for both projects.
Repayment of the loan will be managed through initial distributions from AW1 and proceeds from the AW2 land lease, further strengthening SAE’s financial outlook as it brings these developments online.
On a Final Note
SAE Renewables is laying solid foundations for long-term success in the battery storage sector, underpinned by timely financial support and strategic planning. With critical components already being secured and planning milestones clearly in sight, the company is well-positioned to lead in the energy transition. Longspur Research’s positive outlook reflects the broader momentum building behind SAE’s renewable ambitions.
