Asset management firm Gresham House has announced plans to create a new fund with the aim of raising £200 million to invest in utility-scale energy storage.
The company said the lithium-ion batteries will be used soak up surplus generation from intermittent renewables and support their integration into the energy system by providing balancing services to National Grid.
Gresham House has identified a portfolio of five fully-operational battery storage facilities for the fund to invest in with a combined capacity of 70MW.
The company is planning to complete an initial public offering on the London Stock Exchange in early November. Of the £200 million it hopes to raise in total, £30 million has already been secured from the management team and institutional investors.
The fund will be managed by the new energy division of Gresham House Asset Management.
Ben Guest, head of Gresham House New Energy, said: “A change is coming in the nature of power in this country. We are determined to be part of this revolution that will contribute significantly towards a low-carbon economy.
“The rise of renewables points to a major source of imbalance that requires an immediate solution – energy storage systems are the answer.”
He continued: “The UK energy storage market is set for significant growth.
“However, the total potential of energy storage is currently limited by a lack of experienced operators, and this problem will only intensify, with demand for storage rapidly increasing as the deployment of renewable energy installations continues apace and the traditional coal and gas fired generation is retired.
“We believe energy storage has significant potential from an institutional investment standpoint and is the key to a renewable energy future in the UK.”