Infrastructure investor Equitix has teamed up with Aware Super and the UK’s National Wealth Fund (NWF) to invest £500m (€580m) to build, own and operate UK battery storage assets.
The consortium led by Equitix, and including NWF and Aware Super, is investing in the UK battery storage platform Eelpower Energy, with NWF providing up to £200m and Aware Super contributing a significant portion of the remaining £300m.
The consortium said Eelpower Energy has already identified a portfolio of seed assets which will immediately enter construction, “alongside a material pipeline of high-quality, actionable project opportunities to facilitate growth of the platform over time”.
Eelpower Energy aims to deliver over 1GW of new battery storage capacity for the UK grid in the coming years.
Rachel Reeves, the UK’s chancellor of the exchequer, said: “Upgrading the grid will help to bring down bills, support well paid jobs, and put more money in working people’s pockets.
“This is our plan for change in action, delivering long term economic growth and the jobs of the future through investing alongside the private sector, like this deal with one of Australia’s largest funds, showing that the UK is one of the best places in the world to invest.”
Ian Brown, interim CEO of National Wealth Fund, said: “Battery storage technology is crucial for the successful integration of renewables into the UK energy system and is therefore a priority area for the NWF.
“Our investment in Eelpower Energy is yet another example of how we’re supporting more storage capacity to come online at pace and scale to help meet the government’s clean power targets.”
Damien Webb, deputy CIO and head of international, Aware Super, said: “Aware Super is proud to be a substantial direct investor in Eelpower Energy, reinforcing our commitment to the UK energy transition and industrial strategy. We are excited by our partnership with local institutions, Equitix and the National Wealth Fund, and look forward to generating attractive returns for our 1.2 million members.
“This new platform will build on our existing UK and European infrastructure portfolio – that includes Forth Ports and EuNetworks – and demonstrates our confidence in the battery storage sector’s role in delivering cleaner, more resilient energy systems.”
Hugh Crossley, CEO of Equitix, said: “We’re proud to unite this experienced investor consortium behind Eelpower Energy, a platform with a proven track record in delivering grid-scale battery storage.
“This significant investment reflects our shared confidence in the long-term value of the sector, and our consortium brings deep expertise in infrastructure investment, a proven ability to deliver complex energy projects, and attractive risk weighted returns.”
Michael Shanks, UK energy minister, said: “This National Wealth Fund investment shows that we are serious about developing and backing battery storage to unlock Britain’s renewable potential.
“Every battery storage facility we build will help protect homes and businesses from future energy price shocks and will support our clean power 2030 mission that will scale up renewable projects alongside battery storage across Great Britain, so excess renewable energy can be stored to use later, instead of wasted.”
Mark Simon, CEO of Eelpower Energy, said: “Battery storage is key to enabling the growth of abundant, low-cost renewable energy and without this technology the energy transition cannot succeed.
“Given the track record of our team in this sector I am confident that Eelpower Energy, supported by the powerful consortium of investors led by Equitix, will accelerate the rollout of flexible energy storage assets across the country that are so critical to delivering the UK’s decarbonisation goals.”
To read the latest IPE Real Assets magazine click here.
