Clifford Chance has advised a club of major Czech banks consisting of Česká spořitelna, a.s. and Komerční banka, a.s. in connection with CZK 750 million senior club long-term financing for E.nest Energy a.s., a pioneering 30 MW hybrid energy solution focused on provision of ancillary services for national transmission network. This financing is the first one of its kind on the market, and simultaneously, one of the largest senior debts raised locally for an open-market energy project. The Energy nest project is part of the decarbonisation process of the Czech energy sector.
Darina Merdassi, Manging Director, Decci a.s. and a member of the Board of E.nest Energy a.s., a subsidiary of Decci a.s., said: "We have always believed in renewable energy and the need for disruptive innovation in making everyday life better. To move our vision of a more sustainable, low-carbon energy sector forward, we’ve developed the hybrid power plant Energy nest for the provision of ancillary services to achieve grid stability. Moreover, Energy nest was created with modern energy in mind, promoting the separation of electricity production from the provision of ancillary services. This hybrid energy solution provides more flexibility while minimizing the carbon footprint and achieving national climate goals."
"Energy nest brings a unique solution for higher energy security and flexible use of renewable resources. The presence of balancing capacities like the Energy nest project is a precondition for further large-scale development of renewables in Czechia and for meeting of demanding expectations of various parties. We are very happy that we can contribute to this innovative project and, together with Komerční banka, participate in such a large-scale investment," said Pavel Čech, Head of Sales & Structuring Team Project & Export Finance at Česká spořitelna.
Radim Exner, Director Syndication & Project Finance at Komerční banka, says: "We are proud to be part of this pioneering project which not only supports security and stability of the power grid, but also facilitates wider usage of renewable energy sources. This transaction fits well into our portfolio of ESG-friendly financings and is aligned with our sustainability vision. This project was carefully designed using state-of-the-art technology and expertise. We appreciate cooperation with multiple professional parties leading to successful closing."
Commenting on the transaction, Miloš Felgr, Partner and Head of Banking & Finance practice at Clifford Chance, noted: "We see that new technology and government incentives are increasing the number of innovative energy projects and thus driving a greater demand for high-end legal services. Our advisory in this project is important for us as we continue to build expertise through our global Energy Transition Initiative to ensure that we can effectively support the needs of our clients."
The project site is located in Vraňany and should be completed and put into operation in May 2024, less than a year from the start of construction. At startup time, it will become a flexible energy source with the largest battery storage in the Czech Republic. The investor of the project and the future operator of the hybrid resource is E.nest Energy a.s. The main partners of the project are Siemens, s.r.o., Centrax Ltd, UK, SMA Altenso GmbH, Czech Institute of Informatics, Robotics and Cybernetics (CIIRC CTU), EQUANS Services a.s.and Euroenergy, spol. s.r.o.
The Clifford Chance team working on this transaction was led by Partner Miloš Felgr, with support from Counsel Dominik Vojta, Associate Bára Mika and Junior Lawyer Ondřej Šteco.