UK Infrastructure Bank has released plans to invest up to £200m across two investment funds to accelerate the development and deployment of energy storage technologies.
The bank will invest £75m on a match funding basis into Gresham House Secure Income Renewable Energy & Storage LP (SIRES) alongside a £65m investment from Centrica.
UK infrastructure Bank has also committed to invest £125m on a match-funding basis into Equitix UK Electricity Storage Fund.
The deals, which represent the bank’s first investments in the electricity storage sector, could facilitate around 1300 jobs and will unlock at least a further £200m in match-funded private sector capital.
Gresham House’s fund will focus on developing the collocation of renewable generation and short duration electricity storage facilities to help maximise grid connections.
Centrica will be a cornerstone investor, and this marks the first time the business has put money into in such a fund.
The £65m injection will be used to fund the construction of the seed asset, a collocated solar and battery energy storage project in Hartlepool, County Durham, with 50MW solar capacity and 75MWh of battery energy storage.
Centrica’s Energy Marketing & Trading business will seek to provide a route-to-market for the assets in the fund once they become operational.
The fund is expected to create and support 400 jobs across the UK through the construction, operations and supply chain.
Equitix UK Electricity Storage Fund has an asset portfolio across the UK electricity value chain which provides it with insights into electricity storage project opportunities addressing the more acute constraints within the UK electricity network, as well as a strategic partner network that can help deliver these projects.
The fund will focus on a combination of business models across both short and long duration storage.
Short duration strategies may include installation in households and at underutilised commercial premises, as well as co-location (combining both the battery storage and renewable energy generation at the same site).
The fund will also aim to deploy a range of long duration storage technologies, such as pumped-hydro. It is is expected to facilitate 900 jobs across the UK.
John Flint, CEO of UK Infrastructure Bank, said: “The bank’s investment into these new funds will help break down the barriers to greater, long-term investment across a range of storage sector and renewable energy opportunities.”