National Wealth Fund pumps millions into battery storage developer
The National Wealth Fund has joined forces with two investment firms as part of a £500m venture to enhance the UK’s battery storage facilities.
The consortium – including infrastructure asset manager Equitix and Australian pension fund Aware Super – will “build, own and operate grid-scale battery storage assets” via an investment in developer Eelpower Energy.
Chancellor Rachel Reeves touted the battery storage as a way to “help bring down bills” and boost jobs.
Energy Minister Michael Shanks said the development of battery storage assets would fuel the government’s ‘Clean Power’ mission.
It comes after energy watchdog Ofgem announced on Wednesday morning that the energy price cap would be raised by two per cent – above expectations – between October and December.
The decision is set to push the typical household’s energy spend up to £1,755 per year, despite a fall in wholesale energy prices.
Government’s push for pension giants
The involvement of Australian pension giant Aware Super, which is injecting £200m into the deal, will be welcomed by the UK government, which has been seeking to drive more domestic investment into infrastructure.
The UK’s 17 largest workplace pension providers have signed a voluntary, non-binding agreement, dubbed the Mansion House Accord, a collective pledge to increase investment in the country’s private markets. The agreement aims to unlock £50bn in new capital for the economy.
Ian Brown, interim chief executive of National Wealth Fund, 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.
“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.”
The NWF announced earlier this year Oliver Holbourn, who was chief executive of Natwest’s RBS international arm, will take the helm at the investment vehicle in November.
Holbourn will exceed outgoing boss John Flint, who oversaw Labour’s rebrand of the UK Infrastructure Bank into the National Wealth Fund.