The A$200B Aware Super has joined forces with infrastructure investor Equitix and the UK’s National Wealth Fund (NWF) to launch a £500M battery storage platform, Eelpower Energy, aimed at delivering more than 1gw of new capacity to the U.K. grid.
The new business will build, own, and operate grid-scale battery storage assets to support the country’s transition to clean energy, with a focus on accelerating the deployment of flexible infrastructure essential to integrating renewables, according to a news release by Aware Super.
“Upgrading the grid will help to bring down bills, support well-paid jobs, and put more money in working people’s pockets,” said Rachel Reeves, Chancellor of the Exchequer, in the release. “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.”
The National Wealth Fund, which was formally launched earlier this year as the government’s principal investor and policy bank, is contributing up to £200M as part of its strategy to crowd in private capital and back clean energy projects.
“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,” said Ian Brown, interim chief executive officer of the National Wealth Fund, in the release. “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.”
Energy Minister Michael Shanks called the investment a signal of the government’s seriousness in building out energy storage infrastructure. “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,” he said, in the release.
Eelpower Energy, which will be led by a veteran management team, has already identified a portfolio of seed assets that will move into construction immediately, with a broader pipeline of projects in development. In the release, 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 decarbonization goals,” he added.
Aware Super is a long-term investor in infrastructure and has previously backed assets such as Forth Ports and EuNetworks in the U.K. and Europe. The investment in Eelpower Energy adds to its energy transition strategy.
“Aware Super is proud to be a substantial direct investor in Eelpower Energy, reinforcing our commitment to the U.K. energy transition and industrial strategy,” said Damien Webb, Aware Super’s deputy chief investment officer and head of International, in the release. “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.”
Equitix led the consortium and is a long-time investor in the U.K. energy and infrastructure space. The firm said the move reflects strong institutional belief in the long-term viability and value of battery storage as a core component of the energy system.
“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,” said Hugh Crossley, CEO of Equitix, in the news release. “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.”
