Global infrastructure investment manager I Squared is investing $200m (€185m) to gain a controlling interest in a new UK-based electricity distribution network operator Aurora Utilities.
Aurora, an independent distribution network operator (IDNO) platform, holds a licence to own and operate electricity distribution networks across the UK.
I Squared, which is investing through its energy transition infrastructure fund, said the investment will enable Aurora to expand its grid infrastructure platform, supporting the growth of electric vehicles, battery storage, commercial and industrial electrification and new homes.
The transaction represents the second sustainable investment by I Squared’s Energy Transition Infrastructure Fund.
I Squared said it will use Aurora to build and operate ‘last-mile’ electricity infrastructure, including switchgear, transformers and cables, to support new technologies. The Aurora platform will complement wider I Squared portfolio companies involved with electrification themes including Conrad Energy, Arriva and Cube Cold.
Damian Darragh, fund partner at I Squared, said: “I Squared’s acquisition of Aurora signals our commitment to delivering the infrastructure required to enable electrification of the UK energy system. We are excited to build a platform to meet the growing electricity demands in the UK.”
Simon Reilly, CEO at Aurora, said: “IDNOs must play an increasingly key role in the electrification of transport, energy and heating systems to support UK decarbonisation across all sectors of the economy if we are to meet our net-zero targets by 2050.
“I Squared’s backing is testament to this, and with the team’s proven abilities to accelerate growth in innovative, sustainable businesses, I am confident that Aurora will go from strength-to-strength.”
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