Table of Contents
CMS Advises BW ESS on Major UK Battery Storage Deal
What is going on here?
CMS has advised BW ESS on the sale of a 49% equity stake in its UK battery energy storage system (BESS) portfolio to AIP management. The portfolio has a total capacity of 700 MW with a 3.5-hour duration. BW ESS, a global developer with 3.3 GWh under construction and a 9.5 GWh pipeline, is partnering with AIP, a leading renewable energy investor with €8bn deployed and a 7 GW renewable portfolio.
What does it mean?
This deal reflects the surging importance of BESS projects in the UK’s push for a flexible and resilient energy system. Energy storage enables the integration of intermittent renewable sources like wind and solar into the grid by balancing supply and demand. By selling a minority stake, BW ESS secures funding and strategic backing while retaining control of its projects. For CMS, this transaction reinforces its market-leading reputation, having advised on over 10 GW of UK BESS projects.
Why should I care?
Clients: BESS is no longer niche; it’s a core part of the UK’s energy transition strategy. Transactions like this highlight the appetite from investors and developers to collaborate at scale, unlocking financing for energy infrastructure.
Law Firms: The deal demonstrates growing legal demand in M&A, tax structuring, EPC, planning, and financing within the energy storage space. Firms with cross-disciplinary expertise are best positioned to capture this expanding market.
Aspiring Solicitors: This is a prime example of how law and the energy transition intersect. Understanding how legal teams support renewable energy financing, structure joint ventures, and address regulatory hurdles is valuable for demonstrating commercial awareness in interviews.
Legal and Commercial Implications
Corporate/M&A: Structuring minority investments while safeguarding governance rights and future returns.
Energy regulation: Ensuring compliance with planning, grid connection, and environmental obligations.
Infrastructure investment: A growing trend of private equity and infrastructure funds targeting energy transition assets, signalling sustained deal flow in this sector.
Legal Lingo
Word: Equity Stake
An equity stake refers to the ownership interest a party holds in a company, measured by the percentage of shares they own. It entitles the holder to a proportion of the company’s profits (dividends), voting rights, and residual value if the company is liquidated. The size of the stake determines the level of control and influence an investor has.
In the CMS deal, BW ESS sold a 49% equity stake in its UK BESS portfolio to AIP Management. This means BW ESS keeps majority control (51%) while AIP gains significant influence and economic rights without full control.
AND MORE…
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