15 June 2021
Macquarie’s Green Investment Group (GIG) has acquired a portfolio of development-stage utility-scale, distribution-connected battery storage projects in the UK from Capbal Limited (Capbal). GIG and Capbal will partner to deliver an initial 187 MWh of late-stage development projects, and grow the portfolio through the acquisition and development of additional projects.
To meet the UK’s 2050 net zero target, it is estimated the proportion of intermittent wind and solar capacity in our generation mix will need to increase to almost 60% by 20301. Battery storage provides grid operators with the tools and flexibility to deal with this increased variability of supply and finely match it to demand, by charging during periods of high generation and low demand, and discharging during times of low generation and high demand. This eases pressure on congested areas of the grid, enables more renewable energy to come online, and reduces the reliance on high carbon forms of generation to provide balancing services.
The initial 187 MWh portfolio contains 7 projects strategically located in highly congested areas of the UK network, including Scotland and South East England. The projects will provide a number of grid services, including frequency response, and will participate in the Balancing Mechanism to help National Grid, the UK’s system operator, balance demand and supply in real time. Construction is expected to commence on the first projects during 2021.
The acquisition was delivered by GIG’s energy technology team, who specialise in financing technology solutions critical to the energy transition, including grid scale storage, distributed energy and fleet electrification.
Head of GIG UK and Europe
Managing Director, Capbal
Founded in 2015, Capbal is a battery storage development and delivery platform. Capbal has originated and developed over 200MW of DNO-connected, front of meter battery storage projects across the UK which are close to construction-ready, along with an attractive pipeline of earlier stage project opportunities.
The principals of Capbal, David Fyffe and Andrew Donovan, have long experience of project origination & development, financing, value engineering and M&A transactions in the renewable energy and adjacent sectors.
1. from a current baseline of c. 40%. Fitch Solutions Analysis, 2021