The Corporate Energy team has advised Net Zero Energy Development Limited and Corrado Nominees Limited on the sale of its Frodsham-based grid services asset, Mersey Reactive Power Limited ("Mersey Reactive Power), to Downing Renewables & Infrastructure Trust ("DORE") for c.£11 million. Completion is subject to OfGem approval.
Mersey Reactive Power comprises a fully operational 200 MVAr shunt reactor which absorbs reactive power to increase the efficiency of the network and manage high voltage levels.
The project became operational in May 2022 and was the first to go live as part of the National Grid's Stability Pathfinder initiative. It has an expected asset life of 40 years, while Mersey Reactive Power has an initial fixed priced, inflation-linked, availability-based contract with National Grid ESO until 2031.
The team was led by corporate energy partner Gareth Baker and associate Laura Barron, supported by Róisín Bergin, Siân Dewing and Henry Stride (Corporate), Gus Wood and George Nixon (Energy regulatory), Samantha Holland (Insurance Advisory), Sam Beighton (Antitrust and NS&I), Tom Rank (Tax), and Helen Emmerson (Real estate).
Ian Graves, CEO at Mersey Reactive Power, said: "We thank the Gowling WLG team for its work on this deal. We have worked with them on a number of projects and appreciate their responsiveness, sector knowledge and pragmatic guidance."
Gowling WLG's multi-disciplinary Corporate Energy team has a market-leading reputation and operates seamlessly around the globe. Our lawyers have significant experience advising on large-scale transmission asset transactions, including the shareholders of FI1 Limited on the sale of its stake in the NeuConnect Interconnector Project, the first ever UK-Germany Transmission Link, to TEPCO Power Grid. The team has also acted on a series of highly significant battery storage deals, including for Exagen Group Limited, Eelpower, Vanadium Redox, as well as a syndicate of five commercial banks on the financing for the construction of two greenfield battery storage projects being developed by Zenobe.