Quantum Data Energy (QDE) has completed financial close and has begun construction of the Bordesley 5 MW flexible generation power project.
The company’s third flexible generation power project is now fully funded following a new investment agreement with Power Balancing Services.
The agreement sees Power Balancing Services invest up to £1.75 million at project special purpose vehicle (SPV) level, while Quantum Data Energy will invest up to £1 million. The remaining capital expenditure will be funded through an external debt facility from a commercial bank on market terms.
Construction has now begun and the project is expected to reach commercial operations during the fourth quarter of 2026. Once operational, the Bordesley asset will generate income and add to the company’s growing flexible generation portfolio.
Under the structure, Power Balancing Services will receive a 65% equity interest in the project in exchange for its investment, while Quantum Data Energy will retain a 35% stake. The company’s contribution has already been funded through its recent acceleration capital raise.
The project forms part of a wider build-out strategy. Following completion of this asset, Quantum Data Energy expects to have about 20 megawatts in production, alongside a near-term development pipeline of about 28 megawatts. This would bring the company’s total portfolio to about 48 megawatts.
Quantum said it expects to participate in the upcoming Capacity Market T-4 auction for its Pyebridge 8.1 megawatt flexible generation asset. Management anticipates securing a 15-year capacity market contract, which would materially strengthen the project’s long-term income profile.
Quantum Data Energy’s CEO Pieter Krügel said: “We are delighted with the successful completion of financial close and start of construction at our third flexible generation power project. We are proving that our business model is attractive and that we can scale at pace. We are hard at work to get our next projects funded and into construction, as we progress toward our initial target of 300 MW and beyond. QDE is establishing itself as the first and leading provider of flexible generation power solutions on the LSE, and we are proud to be part of and support the UK's energy transition.”
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The latest financial close marks another step in Quantum Data Energy’s strategy of scaling its flexible generation portfolio while limiting shareholder dilution. By partnering with investors to fund development capital expenditure, the company retains exposure to operational assets while keeping balance sheet pressure relatively low.
Going forward, investors will be watching two key factors. First is the delivery of the Bordesley project on schedule into commercial operations in late 2026. Meanwhile, the upcoming Capacity Market auction for the Pyebridge asset could provide long-term contracted revenues, strengthening visibility as the company works towards its stated 300 megawatt growth target.