The National Wealth Fund has partnered with two investment firms as part of a £500m initiative to bolster the UK’s battery storage infrastructure.
The alliance – featuring infrastructure asset manager Equitix and Australian pension fund Aware Super – will “build, own and operate grid-scale battery storage assets” through an investment in developer Eelpower Energy. Chancellor Rachel Reeves championed the battery storage as a means to “help bring down bills” and create employment opportunities.
Energy Minister Michael Shanks stated the expansion of battery storage assets would drive the government’s ‘Clean Power’ mission. This follows energy regulator Ofgem’s announcement on Wednesday morning that the energy price cap would rise by two per cent – exceeding forecasts – between October and December, as reported by City AM.
The decision is expected to increase the typical household’s energy expenditure to £1,755 annually, despite declining wholesale energy costs. The participation of Australian pension heavyweight Aware Super, which is contributing £200m to the arrangement, will be celebrated by the UK government, which has been working to encourage greater domestic investment in infrastructure.
The UK’s 17 largest workplace pension providers have endorsed a voluntary, non-binding commitment, known as the Mansion House Accord, a shared promise to boost investment in the nation’s private markets. The commitment seeks to release £50bn in fresh capital for the economy.
Ian Brown, the interim chief executive of National Wealth Fund (NWF), stated: “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.”
Earlier this year, the NWF announced that Oliver Holbourn, former chief executive of Natwest’s RBS international arm, will assume leadership of the investment vehicle in November. Mr Holbourn will succeed outgoing boss John Flint, who was instrumental in Labour’s rebranding of the UK Infrastructure Bank into the National Wealth Fund.
