Equitix has partnered with Aware Super and the UK’s National Wealth Fund to launch a £500m platform to build, own and operate grid-scale battery storage.
The new business, Eelpower Energy, will target over 1GW of capacity for the UK grid in the coming years.
Eelpower has identified a portfolio of seed assets that will move into construction immediately alongside a pipeline of project opportunities.
The National Wealth Fund is committing up to £200m to the platform as part of its role as a cornerstone investor.
Eelpower chief executive Mark Simon 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.”
National Wealth Fund interim chief executive Ian Brown 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.”
Equitix chief executive Hugh Crossley said: “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.”
Aware Super deputy CIO Damien Webb said: “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.”
Chancellor Rachel Reeves said the deal shows the UK is “one of the best places in the world to invest”.
Energy minister Michael Shanks added: “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.”