Q&A with Richie Kidd, Head of Sales for Close Brothers’ Energy team

The Close Brothers Energy team has been established for over 10 years, successfully funding multiple renewable energy projects totalling over £1 billion. With a highly motivated team of 14, they pride themselves on the projects they deliver, both in terms of size and significance.

Can you tell us about the team and what you do?

The team provides finance to support the development and operation of standalone energy projects throughout the UK.

We focus on relationship building from day one, it’s always good to work on a project from conception and we tend to get involved with developers once they have both a grid connection offer and the relevant planning permissions in place. This is when they are likely to start considering the other key elements, such as project counterparties and funding structures. 

We meet with the client to identify key areas of focus, discuss any possible challenges and work with them to ensure the project is capable of being delivered on time and within budget.

What are the typical projects you’d fund?

We focus on traditional renewables - solar farms and onshore wind farms - but also fund a range of reserve energy assets, batteries and peakers, as well as CHP (combined heat and power) plants and hydro schemes. 

What does a typical lend look like?

Every project tends to be fairly unique, each with its own nuances, where funding can range from £1 million to £100 million depending on project specifics.

What sets Close Brothers apart from other lenders?

We’re a relationship-based bank so working together with the client from day one is key. 

A particular strength of Close Brothers is our ability to fund the construction element of projects. It’s one of the areas in which we pride ourselves, as we can support clients at this difficult stage when a lot of other funders will typically only get involved once the project is up and running or significantly de-risked. 

It’s clear that the UK will need projects like Medebridge for many years to come to ensure energy security and help achieve our net zero targets. As a relationship-based lender, we are happy to support developers during all economic cycles.

For a project to be successful, what would you typically look for?

It very much depends on what the client is after. As a bank, we will sit down with them on day one to understand their project goals and what they are looking for - whether it be short term, construction finance or longer-term funding should they want to hold the project - and cater the process around that. 

Can you tell us more about Enviromena’s Medgebridge solar farm?

It’s a great project being delivered by an experienced team with an innovative corporate purchase price allocation (PPA) in place to support returns. Working very closely with the Enviromena team right from the start, we knew there would be some challenges to overcome. For example, there are a number of land parcels and we had to ensure several counterparties were on board from day one. Getting to this point - visiting the site, seeing the assets in place, and how quickly it has progressed to this stage - is really quite satisfying to see.

You touch on working with the team at Enviromena, what's it been like?

First class. The experience their team has brought to the project, and the fact Close Brothers has been working with Enviromena for several years, has really helped the relationship to grow over time. It’s at the point now where we’re very much part of the team, rather than it being a typical funder-developer relationship. 

What is the most satisfying part of your role?

Very easy - seeing a project being constructed and becoming operational. At that point, the project is traditionally de-risked, with a happy developer and project team that you have worked very closely with from initial discussions through to delivery.

Given Close Brothers is a major player in the energy market, what are your predictions for the renewable energy sector, especially as we’re working towards meeting our net zero commitments?

I think there's a bit more positivity in the market than there was 18-24 months ago. With the most recent Contract For Difference (CFD) auction producing supportive pricing and the offtaker market now seeing sensible offerings from corporate counterparties looking to source renewable energy sources, there are more options for developers in the renewable space. There’s obviously still a place for reserve assets as well and we are seeing more colocation opportunities, combining Battery Energy Storage System (BESS) projects with traditional solar and wind technologies. I think the sector can continue to grow from strength to strength.

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