Asset manager AIP Management has bought a 49% stake in a 2.4GWh UK portfolio from global BESS investment platform BW ESS for a deal in excess of £650 million (US$873 million).
A source close to the deal confirmed that its enterprise value is more than £650 million, and pertains to a battery energy storage system (BESS) portfolio with a capacity of 700MW and a 3.5-hour duration, split across three projects: the 100MW/331MWh Bramley project, the 400MW/1,422MWh Hams Hill project and the 200MW/712MWh Berkswell project.
The Bramley project started operations in February, with the remainder of the portfolio currently under construction.
Greg Falzon, partner and co-head of investments at AIP, said the deal “reflects our conviction in the UK energy storage market.”
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The transferred stake will be held by a newly-formed entity, AssetCo, while BW ESS will retain the remaining 51% of the portfolio, once the transaction completes customary approvals. BW ESS’ total pipeline now stands at 500MWh of operational BESS, alongside a further 3.3GWh under construction.
“This investment reflects our conviction in the UK energy storage market and builds on the knowledge we have developed through our existing investments in co-located BESS,” said Greg Falzon, partner and co-head of investments at AIP. “Together we will deliver long-term value while enabling the deployment of critical flexibility in the UK power system.”
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