Storage

GIG & Capbal to develop 187 MWh utility-scale battery storage portfolio in the UK

15 June 2021

  • GIG acquires its first utility-scale battery storage development portfolio in the UK from Capbal. 
  • GIG and Capbal form a new partnership to develop the  initial 187 MWh portfolio and source additional development opportunities. 
  • The portfolio will play a critical role in enabling more renewable energy capacity to connect to the UK’s electricity grid. 

 

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.

‘Net-zero demands an overhaul of our entire energy systems - for us to fundamentally rethink not just how we generate energy, but how we get it where we need it, when we need it. Our success in creating a flexible, low-carbon energy system is inextricably linked to our success in delivering energy storage at scale. GIG’s partnership with Capbal is an exciting first step for us in this market, and we look forward to creating even more opportunities to accelerate the deployment of this critical technology.’

Edward Northam 
Head of GIG UK and Europe

‘Battery storage’s time has come. Net zero by 2050 will require a massive clean energy expansion during the 2020s. Battery storage is key enabling technology, adding essential flexibility and intelligence to a grid under increasing stress due to the rapid growth in intermittent renewables. Although it has taken time for the battery storage sector to mature, scale and speed to market are now vital and GIG is the ideal partner to deliver our initial portfolio of attractive, grid scale projects and more.  We look forward to an energetic and productive partnership with GIG.’

David Fyffe 
Managing Director, Capbal

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About 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.

Footnotes

1. from a current baseline of c. 40%. Fitch Solutions Analysis, 2021