Clyde & Co advises DRI on its first BESS financing in Poland

Clyde & Co has advised DRI, the EU renewables arm of DTEK Group, the biggest private investor in energy in Ukraine, on the financing of the 133 MW Trzebinia battery energy storage system (BESS) project in Poland, one of the first BESS financings in the country structured on a project finance basis.

Clyde & Co’s international team advised on all aspects of this important, multi-jurisdictional transaction, including the structuring of the financing, negotiation of the term sheet, the English-law governed facilities agreement and other finance documents, including security and hedging documentation.

The financing was provided by PKO Bank Polski, Erste Bank Polska and UniCredit S.P.A., with the support of Polish Export Credit Agency (KUKE). The Clyde & Co team in Poland was led by Michał Kalicki, Counsel, Head of Banking & Finance, supported by Marcin Lorenc, Associate. The English law / international counsel team was led by Alex Blomfield, Partner, and also included Marc Fèvre, Consultant, and John Angus, Senior Associate.

An integrated English law / Polish law team led by Alex Blomfield, Partner and supported by Agnieszka Kulińska, Partner, Michał Motylewski, Counsel / Energy Transition Director, Maciej Dymnicki, Counsel, Marc Fèvre, Consultant and Julia Kryńska, Associate also advised on the project agreements, including an equipment supply agreement and long term service agreement with Fluence, a balance of plant EPC contract with DTEK Construction, a transformer supply agreement and in relation to revenue.

The Trzebinia BESS project, with a capacity of 133MW, is expected to become one of the largest battery energy storage facilities participating in Poland’s capacity market once operational. The project secured capacity market support in 2022, with delivery starting in 2027 for a period of 17 years, with Poland’s transmission system operator, PSE, acting as the counterparty. Construction of the facility is already underway.

Michał Kalicki, Counsel, Head of Banking & Finance in Poland, Clyde & Co, said “This transaction marks an important milestone in the development of battery energy storage projects in Poland and highlights the increasing sophistication of the local project finance market. We are pleased to have supported DRI on a complex, first-of-its-kind financing in the BESS sector, contributing to the growth of critical infrastructure supporting the energy transition.”

Alex Blomfield, Partner, Energy Transition Transactions, London, Clyde & Co, added: "Battery storage is becoming a cornerstone of Europe’s energy transition, and Poland is rapidly establishing itself as a key market. We are delighted to support clients such as DRI that boldly move the market. We were also happy to field an integrated team for this assignment, combining international and English law expertise with strong local insight from our Warsaw office."