Investment partnership between Aware Super and National Wealth Fund to fund UK-based energy storage company
The National Wealth Fund (NWF), formerly known as the UK Infrastructure Bank, has made a significant stride in the renewable energy sector by committing up to £200m to Eelpower Energy's battery storage platform. This investment is a testament to NWF's belief in the crucial role of battery storage technology in integrating renewables into the UK energy system.
Ian Brown, NWF's interim chief executive, considers battery storage a priority area for the fund. The investment is another example of NWF's efforts to support more storage capacity coming online at pace and scale.
Joining NWF in this investment is Aware Super, an Australian superannuation fund managing A$200bn. Aware Super launched its London office in November 2023 with an initial investment commitment of £5.25bn into UK and European infrastructure. The investment by Aware Super is driven by an increasing appetite for infrastructure assets due to its emissions reduction goals. Aware Super is targeting a 45% reduction in scope 1 and 2 portfolio emissions by 2030.
The investor consortium around Eelpower Energy's £500 million battery storage platform also includes Equitix. Equitix's consortium brings deep expertise in infrastructure investment, a proven ability to deliver complex energy projects, and attractive risk-weighted returns. Equitix's CEO, Hugh Crossley, commented that the significant investment reflects their shared confidence in the long-term value of the sector.
Eelpower Energy, founded in 2017, has an experienced team that built the UK's first ground-mounted solar farm in 2010. This new investment will enable Eelpower Energy to build a portfolio of storage assets across the UK, adding 1GW of additional battery storage capacity into the UK's grid.
The investment platform will build on the existing UK and European infrastructure portfolio, which includes Forth Ports and EuNetworks. The UK's National Wealth Fund, wholly owned by HM Treasury and operating as a strategic investor to crowd in private capital, is also part of the investor consortium.
Rachel Reeves, the chancellor of the exchequer, commented that this investment is an example of the UK's Plan for Change, delivering long-term economic growth and jobs. The investment by Aware Super and the National Wealth Fund (NWF) underscores the growing investor confidence in energy storage assets, as reflected by Equitix's consortium. Aware Super's deputy chief investment officer, Damien Webb, expressed excitement about the partnership.
This collaboration marks a significant step towards a more sustainable and resilient UK energy system, demonstrating the potential of strategic partnerships in driving the transition to renewable energy.
Read also:
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Daily Consumption of Superfood Tomatoes: Unveiling Their Daily Impact on Your Body
- Oil sources from plants: Characteristics, advantages, and potential hazards
- Recognizing cooling as a fundamental human right, three decades on from the devastating heatwave in Chicago
