BlackRock Real Assets is investing up to £200m (€234.8m), on behalf of its third global renewable power fund, to build battery storage assets in the UK.
BlackRock said it has made the initial commitment on behalf of the BlackRock Global Renewable Power III (GRP III) fund to support the build-out of up to 2GWh battery storage assets in a partnership with KX Power (KXP).
KXP is a developer and asset manager of utility-scale energy storage and flexibility technology in the UK.
The BlackRock and KXP joint venture will develop, build and operate battery storage projects.
The investment is GRP III’s first into the UK’s battery storage market.
David Giordano, managing director, and global head of renewable power at BlackRock said GRP III invests in the climate infrastructure of the future.
“With our JV investment in KXP, we are delighted to be driving the development and expansion of the UK’s battery storage market.
“On behalf of our clients, we see vast opportunity in the development of a sophisticated network of battery storage assets across the UK and in other regions across the globe to facilitate the transition towards a green energy future,” Giordano said.
Zhe Zhang, CEO of KXP, said the firm’s mission is to enable more and more adoption of UK homegrown green power, as embraced by the UK administration’s net-zero strategy and by local councils.
“Combining KXP’s on-the-ground project development skills and power trading expertise with BlackRock’s knowledge and track record in climate infrastructure, I am certain KXP will become a significant player in the renewable energy market in the UK.
“Today’s investment is a testament to investors’ strong appetite for renewable energy and accelerates the UK’s growth towards innovative, sustainable and inclusive energy,” the CEO said.
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