Aviva Investors is acquiring a stake in European battery energy storage (BESS) firm Terra One Climate Solutions, as part of an investment of up to €150m.
Aviva said it is making an initial €75m alongside an additional €15m funding from Terra One to help finance the construction of 500MW of BESS assets in Germany. The projects are expected to be operational by 2028.
As part of the deal, Aviva will also gain an unspecified amount of initial shareholding in Terra One and two seats on Terra One’s board.
In total, Aviva expects to invest €150m to support Terra One’s pipeline of later-stage development assets.
Terra One’s current pipeline totals 5.8GW of assets across the entire battery energy storage value chain. This includes development projects, assets under construction and operational assets managed in-house by the company.
Angenika Kunne, head of infrastructure equity at Aviva Investors, said: “We are pleased to have completed this platform investment in Terra One, a company which has benefitted from first-mover advantage in one of Europe’s largest power markets.
“Energy storage in Germany is at a fast-growing and dynamic stage of its development, making it an exciting place to invest whilst capturing growth and returns. This is another example of how Aviva Investors is investing in new technologies that can help whole industries get ready for the future.”
To read the latest IPE Real Assets magazine click here.
