Global energy platform backed by private equity firm TPG closes non-recourse financing deal for 500MW battery project in the Borders, with construction already under way and operations expected by 2027.
A large-scale battery storage project in the Scottish Borders has secured £245m in financing, marking a significant step forward for one of the UK’s growing pipeline of grid-scale energy storage developments.
The funding, arranged by a group of international lenders including CIBC, MUFG and NatWest, will support the construction of a 500MW battery energy storage system (BESS) at Eccles–Leitholm, a site positioned along key electricity transmission routes between Scotland and England.
The project is being developed by Matrix Renewables, a Madrid-based firm backed by the TPG Rise fund, part of the US private equity group TPG. The financing has been structured on a non-recourse basis, meaning repayment is tied to the project’s own revenues rather than the broader balance sheet of the developer.
Construction began in November 2025, with the facility expected to enter commercial operation in the third quarter of 2027. The project is being delivered in partnership with EDF, the French state-backed energy company, which is playing a role in its development and integration.
Battery storage projects of this scale are increasingly seen as central to the UK’s energy transition, particularly as the system absorbs higher levels of intermittent renewable generation such as wind and solar. By storing electricity when supply is high and releasing it when demand rises, they are intended to improve grid stability and reduce reliance on fossil fuel backup generation.
Matrix said the Eccles project would provide flexibility services equivalent to the annual electricity consumption of around 270,000 households and could avoid an estimated 170,000 tonnes of carbon dioxide equivalent emissions each year. Such figures, while indicative of potential system-wide benefits, depend heavily on how the asset is operated within the wider electricity market.
The location of the site reflects a broader shift in infrastructure investment towards areas close to major transmission corridors, where capacity constraints and balancing challenges are most acute. Scotland, with its significant renewable generation capacity, has become a focal point for such developments, particularly where electricity must be transported south to meet demand in England.
The involvement of three major financial institutions in underwriting the deal signals continued investor confidence in the UK’s storage market, despite ongoing uncertainty around regulatory frameworks and long-term revenue models for battery assets. Non-recourse financing structures, commonly used in infrastructure projects, allow lenders to isolate risk within a single development while enabling developers to scale portfolios across multiple sites.
Matrix said it had engaged with local authorities and environmental stakeholders during the planning and development process, and has entered into a collaboration agreement with the Leitholm, Eccles and Birgham Community Council to support local initiatives. Details of those initiatives have not been set out publicly.
While the company has pointed to job creation and economic activity during construction and operation, the longer-term local impact of battery storage facilities is typically limited once projects move beyond the build phase, with relatively small operational workforces required.
The Eccles project forms part of a wider expansion strategy by Matrix Renewables in the UK, where the company is pursuing multiple energy storage and renewable developments. As the UK’s electricity system continues to shift towards lower-carbon sources, such projects are likely to play an increasingly prominent role.
Whether they deliver the scale of benefit anticipated will depend not only on their technical performance, but on how effectively they are integrated into a power system undergoing rapid and complex change.
