Macquarie’s Green Investment Group (GIG) has acquired a portfolio of development-stage utility-scale, distribution-connected battery storage projects in the UK from Capbal for an undisclosed price.
GIG and Capbal will partner to deliver an initial 187 megawatt-hour of late-stage development projects, and grow the portfolio through the acquisition and development of additional projects.
The initial 187 MWh portfolio consists of seven projects strategically located in highly congested areas of the UK network, including Scotland and south-east England.
The projects will provide a number of grid services, including frequency response, and will participate in the balancing mechanism to help National Grid.
Construction is expected to start on the first projects during 2021.
The acquisition was delivered by GIG’s energy technology team, which specialises in financing technology solutions critical to the energy transition, including grid scale storage, distributed energy and fleet electrification.
GIG head in the UK and Europe Edward Northam said: “Net-zero demands an overhaul of our entire energy systems – for us to fundamentally rethink not just how we generate energy, but how we get it where we need it, when we need it.
“Our success in creating a flexible, low-carbon energy system is inextricably linked to our success in delivering energy storage at scale.
“GIG’s partnership with Capbal is an exciting first step for us in this market, and we look forward to creating even more opportunities to accelerate the deployment of this critical technology.”
Capbal managing director and founder David Fyffe said: “Battery storage’s time has come. Net zero by 2050 will require a massive clean energy expansion during the 2020s.
“Battery storage is key enabling technology, adding essential flexibility and intelligence to a grid under increasing stress due to the rapid growth in intermittent renewables.
“Although it has taken time for the battery storage sector to mature, scale and speed to market are now vital and GIG is the ideal partner to deliver our initial portfolio of attractive, grid scale projects and more.
“We look forward to an energetic and productive partnership with GIG.”