PwC Corporate Finance advises Earba and Gilkes Energy on strategic investment from Foresight
PwC is pleased to announce it advised the Earba Pumped Storage Hydro (PSH) project ("Earba") and Gilkes Energy Limited ("Gilkes Energy") on the successful raise of development capital from Foresight Energy Infrastructure Partners II S.C.Sp, a fund under the management of Foresight Group LLP ("Foresight"). Earba is a 1.8 GW / 40 GWh long-duration energy storage project in the Scottish Highlands and one of the largest PSH projects under development in the UK.
This investment will provide capital and long-term support to advance the next phase of the project as it progresses towards construction and delivery. The investment will also support detailed engineering, procurement, site investigations and preparations for construction. With an installed capacity of 1.8GW and energy storage capacity of 40GWh, Earba will provide the equivalent of 22 hours of full-power export. The project will play an important role in balancing the electricity system, storing renewable power when generation exceeds demand and releasing it when additional electricity is required. The project on average generates electricity to power more than 1.4 million UK homes and is also expected to generate significant economic activity during its construction and operation, including employment opportunities and investment in the local and regional supply chain.
The investment comes at a pivotal time for the UK’s energy transition. As the electricity system incorporates increasing volumes of intermittent renewable generation, large-scale, long-duration storage will be critical to maintaining system flexibility, strengthening security of supply and reducing reliance on fossil-fuel generation.
Earlier this year, Earba reached a significant milestone with its inclusion in Ofgem's 'minded-to' decision under the UK Government’s Long Duration Electricity Storage (LDES) cap and floor scheme. Earba is one of just three pumped storage hydro projects included in Ofgem’s proposed portfolio and is the largest of the three in terms of both installed capacity and stored energy. Ofgem is expected to confirm its final decisions on the first window of the LDES cap and floor regime in autumn 2026.
In addition to advising Earba and Gilkes Energy on the capital raise, PwC also supported the project team with its Ofgem submission under the LDES cap and floor regime.
The transaction demonstrates PwC’s continued successful track record at the forefront of long duration energy storage as well as deep sector expertise with transaction execution capabilities across energy transition.
“We are delighted to have completed this development capital raise for the Earba project, which will be the largest such project in the UK by both installed capacity (MW) and energy stored (MWh). We are extremely grateful for the support we received from PwC throughout the process. Their deep sector knowledge of long duration energy storage and the cap and floor regime, as well as their experience in pumped storage hydro, commercial judgement and hands-on support were instrumental in helping us achieve a successful outcome.”
“Foresight is delighted to be investing into the Earba project. With renewable generation continuing to increase, the Earba PSH has the potential to provide vital flexibility, resilience and stability to the electricity system. We look forward to working closely with Gilkes Energy to progress the project through development and into construction, contributing to the UK’s energy security and wider energy transition.”
“We are extremely pleased to have supported Earba and Gilkes Energy in reaching this milestone, which represents a significant step forward for the long duration energy storage sector as it develops in the UK. We look forward to seeing the success of this partnership unfold and the continued development of this iconic scheme.”
Gilkes Energy
Gilkes Energy is an independent renewable energy developer specialising in pumped storage hydro and conventional hydro projects. Headquartered in Kendal, Cumbria, the company has a strong track record of developing conventional hydro projects and since 2019 has been developing Earba and Fearna, their flagship PSH projects.
The Earba Storage project is a proposed pumped storage hydro scheme in Scotland with an installed capacity of 1.8GW and storage capacity of 40GWh. It is designed to provide long-duration flexibility to the UK electricity system and support the integration of renewable generation. For more information on the Earba project see www.earbastorage.co.uk
Foresight Group
Founded in 1984, Foresight is a leading investment manager in real assets and capital for growth, operating across the UK, Europe and Australia. With decades of experience, Foresight offers investors access to attractive investment opportunities at the forefront of change. Foresight actively builds and grows investment solutions to support the energy transition, decarbonise industry, enhance nature recovery and realise the economic potential of ambitious companies. A constituent of the FTSE 250 index, Foresight’s diversified investment strategies combine financial and operational skillsets to maximise asset value and provide attractive returns to its investors. Its wide range of private and public funds is complemented by investment solutions designed for the retail market. Foresight is united by a shared commitment to build a sustainable future and grow thriving companies and economies.
The PwC deal team
The PwC UK Corporate Finance team advising on the transaction was led by Jonathan Massam (Partner) and David MacGray (Director), supported by Robert Senger, Ruth Foster, Lucie Coussmaker, Madeleine Phillips, Tilda Smaill, and Ben Barron.
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