GLIL Infrastructure, the fund backed by a number of UK local government pension schemes (LGPS), has invested £150m (€175m) in specialist utility and energy storage infrastructure company Flexion Energy.
GLIL said the deal is a joint venture with ion Ventures to scale UK energy storage infrastructure and support the UK’s transition to net-zero.
GLIL’s investment will enable Flexion to construct and make operational an established UK pipeline of up to 300MW of grid-connected battery storage systems within the next 24 months. Flexion plans to deliver 1GW of operational storage systems within five years.
Jonathan Ord, investment director at GLIL Infrastructure, said: “Energy specialists like Flexion have a critical role to play in the country’s future infrastructure objectives.
“Our backing of the company ties in with our extensive plans to assist in the UK’s recovery and help to build a sustainable economy for the future through infrastructure investment.”
Dan Taylor and Hassen Bali, co-founders of Flexion Energy and ion Ventures, said: “The requirement for energy storage in the UK is significant and growing as we transition to a lower-carbon economy.
“Energy storage will play a central role in the energy transition, which is driven by the UK’s legally binding commitment for net-zero carbon emissions by 2050 and accelerated by the UK government’s recent Ten Point Plan, in addition to the rapidly evolving demand for electricity.”
The deal is the eleventh investment by GLIL. Its investments to date include equity stakes in Anglian Water, Clyde Windfarm, Forth Ports, two fleets of trains with Rock Rail, a portfolio of PPP assets and investments in biomass and anaerobic digestion energy generation, and Agility Trains East.
GLIL recently acquired UK energy infrastructure provider Smart Meter Assets 1.