UK Infrastructure Bank and power company Centrica have announced a £200 million allocation across two investment funds to accelerate the UK’s transition to clean and green energy.
The investment is a development boost to the deployment of storage technology, helping the UK’s transition to a more resilient electricity network.
The bank will invest £75 million on a matched-funding basis into the Gresham House Secure Income Renewable Energy and Storage LP (SIRES) fund, alongside a £65 million investment from Centrica.
UK Infrastructure Bank has also committed to investing £125 million on a matched-funding basis into Equitix UK Electricity Storage Fund.
The bank helps companies tackle climate change and boost growth across the UK, while Centrica provides energy services to customers mainly in the UK and Ireland.
UK Infrastructure Bank said it is partnering with “highly regarded third-party fund managers” to deploy its capital into the storage sector without delay, as it continues to build its internal capabilities to make direct equity investments.
The deals could create about 1300 jobs and unlock at least an extra £200 million in match-funded private sector capital, highlighted investors, helping “build confidence among private investors.”
As per National Grid forecasts, up to 29 gigawatts (GW) of total storage is needed by 2030 and up to 51 GW by 2050, straining existing resources and necessitating capital deployment and investment in new storage projects.
The UK electricity network is now reliant on energy from intermittent renewable sources, and securing enough storage capacity is vital to ensure an affordable transition away from fossil fuels to achieve the UK’s net zero goal by 2050.
Chris O’Shea, CEO, Centrica, commented: “Some think the UK’s journey to net zero has to be expensive and inconvenient, but we see the transition to net zero as a fantastic opportunity for the UK to create new well-paid jobs and for businesses to transform the way they operate.”
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