Eelpower has agreed a £200m joint venture partnership with NextEnergy Solar Fund, the specialist solar and energy storage climate impact fund, with a combined installed power capacity of 865MW.
This second joint venture, NextPower Eelpower II (“NPEP2”), builds on the successful working relationship that Eelpower and NextEnergy Solar Fund (NESF) have established since they announced their first JV in September 2021: a £100m partnership, NextPower Eelpower (“NPEP”), to invest in the UK battery storage market. NPEP’s first 50MW battery storage project is currently under construction in Fife, Scotland, and is expected to be energised and grid-connected in the first half of 2023.
Energy storage remains a key strategic priority to NESF and forms part of its long-term equity growth story. NPEP2 significantly increases the company’s position in the UK battery storage sector and provides a unique opportunity through both NPEP and NPEP2, to actively pursue a high-quality pipeline of over 500MW (£300m) battery energy storage opportunities, which are already under exclusivity.
NPEP benefits from the Eelpower’s strong track record and extensive experience in the delivery, management, and optimisation of battery storage assets in the UK. Eelpower will provide EPC and ongoing specialist asset management services to the storage assets.
Kevin Lyon, Chairman of NextEnergy Solar Fund said: “Battery storage is a vital technology in increasing the penetration of renewables in the UK. NESF has made excellent progress expanding and diversifying into this technology through its relationship with Eelpower. NESF has created a unique opportunity to become a key player in this space, whilst enhancing the existing portfolio of solar assets.”
Michael Bonte-Friedheim, CEO of NextEnergy Group said: “The new joint venture partnership builds on the successful relationship with the Eelpower team and enhances NESF’s position as a key player in the battery storage sector. The partnership also secures NESF an exclusive pipeline of over 500MW of battery storage opportunities which is incredibly exciting and will further enhance the UK’s energy independence once energised and grid-connected.”
Mark Simon, CEO of Eelpower Ltd: “We are delighted that NESF has chosen to extend their partnership with us to develop and manage additional storage capacity in the UK, which reflects well on the work that we have delivered in the sector over recent years.”
Utilisation of full capacity of NPEP2 remains subject to NESF shareholder and FCA approval due to the company’s existing investment policy on energy storage.