NextEnergy Solar Fund Ltd (LON:NESF) today announced a second battery storage joint venture partnership with UK energy storage specialist Eelpower Ltd as it continues to expand in the sector.
The new GBP-200-million (USD 231m/EUR 230m) JV follows a GBP-100-million JV partnership that the parties formed last year and whose first 50-MW battery storage project is now under construction in Fife, Scotland and is set to go live in the first half of 2023.
The solar fund said that the two partnerships allow it pursue over 500 MW battery energy storage opportunities. These are worth GBP 300 million and are already under exclusivity. To fully make use of them, the company will need approval from shareholders and the Financial Conduct Authority as it has an investment policy limit of 10% of gross asset value into energy storage, which will need to be lifted.
NESF will own 75% of the new JV, up from 70% in the previous partnership, with Eelpower holding the remainder. The storage company will provide engineering, procurement and construction (EPC) and asset management services to the storage facilities.
Noting that battery storage is key to increasing the penetration of renewables in the UK, NESF chairman Kevin Lyon said that the company “has created a unique opportunity to become a key player in this space, whilst enhancing the existing portfolio of solar assets.”
NESF currently has 865 MW of installed power capacity in the UK and Italy.
(GBP 1 = USD 1.157/EUR 1.151)
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