BCI to Acquire Stake in Macquarie GIG's Global Battery Storage Platform
British Columbia Investment Management Corporation (BCI) has entered into an agreement with Macquarie Asset Management’s Green Investment Group (GIG) to acquire an interest in GIG’s global battery storage platform. The transaction is anticipated to close in the second quarter of 2023, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions.
The platform, Eku Energy, was launched to develop, build, and operate a global portfolio of utility-scale battery storage projects. Eku Energy has 190MWh of projects with a pipeline of over 3 GWh[1] across the UK, Australia, Japan, and Europe[2]. Eku Energy’s projects will provide vital grid services in key global markets.
Battery storage is an essential enabler of the energy transition as it captures and stores excess clean energy produced during times of oversupply and delivers energy when there is a shortage or increased demand. Eku Energy will also provide additional services which help manage and balance electricity grids, enabling more renewable energy capacity to connect to the grid and support the decarbonization of economies, while helping secure supply.
“We look forward to working with Eku’s management and staff in the ongoing development and expansion of the company,” said Lincoln Webb, executive vice president & global head, infrastructure & renewable resources. “As countries worldwide facilitate the integration of clean energy to meet energy transition objectives, large-scale battery storage platforms like Eku are poised for strong growth, resulting in attractive investment opportunities.”
Chris Morrison, interim CEO of Eku Energy, said: “We are delighted to receive the backing of BCI. BCI’s investment recognises the quality of our team and platform, as well as the size of the opportunity for battery storage technology as the shift to clean energy accelerates. We look forward to working with teams from Macquarie Asset Management’s Green Investment Group and BCI as we develop our global pipeline of opportunities in battery storage and establish Eku Energy as a leading contributor to the energy transition.”
About BCI
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada with C$211.1 billion under management, as of March 31, 2022. Based in Victoria, British Columbia, with offices in Vancouver and New York City, BCI is invested in: fixed income and private debt; public and private equity; infrastructure and renewable resources; as well as real estate equity and real estate debt through our independently operated platform company QuadReal Property Group. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk and return requirements over time.
BCI’s infrastructure & renewable resources program (I&RR), valued at approximately C$20.2 billion, invests in tangible long-life assets in the Americas, Europe, and Asia Pacific, including a portfolio of direct investments in regulated utilities, energy, telecommunications, transportation, timberlands, and agri-businesses.
About Eku Energy
Eku Energy is a globally diversified and technology enabled energy storage business.
We develop, build, and manage energy storage assets that facilitate the delivery of reliable, clean energy and advance the energy transition. Our global portfolio of 3 GWh of digitally enabled, flexible, utility-scale storage projects will provide vital grid services in key markets around the world.
Established by Macquarie’s Green Investment Group, Eku Energy’s purpose-built team brings together specialist technical capabilities, with experience across origination, development, system design, power markets and software optimisation. By combining technical, digital and financial innovation with a local partnership approach and data driven understanding of markets, we develop sophisticated revenue contracting strategies that maximise the benefits of energy storage systems in any given location.
[1] Company estimates as at August 2022[2] Eku Energy is operational in the UK and Japan, with the commencement of operations and transfer of seed assets in other jurisdictions to occur as relevant regulatory approvals are obtained
Let's begin with a little background.
In November 2022, reNEWS.BIZ reported that Macquarie's GIG launched an energy storage developer:
Green Investment Group (GIG), via the Macquarie Green Investment Group Energy Transition Solutions (MGETS) fund, has launched a global battery storage platform.
Eku Energy, a standalone business, will develop, build, and actively manage a portfolio of energy storage assets diversified across markets, revenue, and contracting structures.
Eku Energy’s initial portfolio will consolidate GIG’s existing battery storage activities in the UK, Australia, Japan and Taiwan.
Subject to receipt of relevant regulatory approvals, Eku will hold a pipeline of developed, acquired, or identified projects totalling over 3GWh, including a 150MW/150MWh project in Australia at the site of the decommissioned Hazelwood coal-fired power station in Victoria.
At launch, Eku will also hold one project under construction in the UK, a 40MW/40MWh facility in Essex.
Chris Morrison, Interim CEO of Eku Energy, said: “As the world races towards net zero, the challenges around the energy transition are shifting. We’ve proven we can produce renewable energy at low cost, now we need to deliver the smart, flexible energy system that will support the electrification of the global economy.
“Battery storage is critical to maximising the role for renewables in our energy mix by enabling the delivery of dispatchable clean energy.
“We’re excited to be at the leading edge of this journey, delivering the investment and projects at scale that will be key to net zero.”
Mark Dooley, Global Head of GIG, said: “The energy transition demands an overhaul of our entire energy system.
“We’ve been working to accelerate the deployment of energy storage solutions for many years now and are excited by the opportunity to take this work to the next level with the launch of Eku Energy.
“There is a significant volume of investment required in these technologies in the years ahead.
“We are well positioned to support this demand – harnessing our sectoral knowledge and global presence, while leveraging learnings from around the world, to provide our investors with exposure to this defining investment theme.”
So, Macquarie's Green Investment Group (GIG), via the Macquarie Green Investment Group Energy Transition Solutions (MGETS) fund, launched Eku Energy, a global battery storage platform.
BCI's Infrastructure & Renewable Resources team led by Lincoln Webb invested in the MGETS fund and then approached GIG to acquire an interest in this platform.
Eku Energy is developing, building, and
actively managing a portfolio of energy storage assets diversified across
markets, revenue, and contracting structures:
About Eku
Eku Energy is a globally diversified and technology enabled energy storage business.
We develop, build, and manage energy storage assets that facilitate the delivery of reliable, clean energy and advance the energy transition. Our global portfolio of 3 GWh of digitally enabled, flexible, utility-scale storage projects will provide vital grid services in key markets around the world. [1]
Established by Macquarie’s Green Investment Group, Eku Energy’s purpose-built team brings together specialist technical capabilities, with experience across origination, development, system design, power markets and software optimisation. By combining technical, digital and financial innovation with a local partnership approach and data driven understanding of markets, we develop sophisticated revenue contracting strategies that maximise the benefits of energy storage systems in any given location.
[1] On launch, Eku Energy will commence operations in the UK and Japan with commencement of operations and transfer of seed assets in other jurisdictions to occur as relevant regulatory approvals are obtained.
Why battery storage?
Battery storage is an essential enabler of the energy transition, helping energy systems match green energy generation to demand.
By capturing and storing excess clean energy produced when there is an oversupply and then dispersing energy when there is a shortage or additional demand, batteries can ‘time shift’ the delivery of clean, dispatchable power.
Thanks to digital, sub-second response times, they also offer multiple additional services which help manage and balance electricity grids around the world.
This enables more renewable energy capacity to connect into the grid, supporting the digitisation, electrification and decarbonisation of economies around the world, while securing supply.
Indeed, battery storage is the key for the transition economy as it will enable more renewable energy capacity to connect into the grid, supporting the digitisation, electrification and decarbonisation of economies around the world, while securing supply.
This is a great platform for BCI to invest in, one I foresee growing very strongly over the next decade as the transition economy takes hold.
Lincoln Webb, EVP and global head of Infrastructure and Renewable Resources at the BCI and his team are doing a great job managing and developing this portfolio for the long run:
Our program comprises a portfolio of regulated utilities in the electricity, gas, and water & wastewater sectors; transportation, including roads, rail, bridges and port terminals; telecommunications; as well as investments in timberlands and agri-businesses. It is well-diversified by geographic regions and sectors, with a typical investment horizon that can span over a 20-year holding period.
We focus on meaningful equity positions that allow us to adopt an active governance approach. This approach to governance enables the team to actively manage the assets to increase long-term value and align with the interests of BCI, the portfolio companies, and our clients.
Now, as far as the battery storage industry, yesterday ResearchAndMarkets.com issued a press release going over highlights from its Battery Energy Storage System Global Market Report 2022:
Dublin, Jan. 18, 2023 (GLOBE NEWSWIRE) -- The "Battery Energy Storage System Global Market Report 2022: Ukraine-Russia War Impact" report has been added to ResearchAndMarkets.com's offering.
The global battery energy storage system market is expected to grow from $3.36 billion in 2021 to $4.34 billion in 2022 at a compound annual growth rate (CAGR) of 29.1%. The battery energy storage system market is expected to reach $11.14 billion in 2026 at a CAGR of 26.6%.
North America was the largest region in the battery energy storage system market in 2021. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the battery energy storage system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of battery energy storage system are front-of-the-meter and behind-the-meter. A front-of-the-meter refers to the battery integrated into the electricity network and used to smooth out the flow of energy. A front-of-the-meter is used to provide power to off-site locations. The different connection types include on-grid and off-grid, and involve various types of batteries such as lithium-ion batteries, advanced lead-acid batteries, flow batteries, and others. It is used in telecommunication, data center, medical, industrial, marine, and other applications.
The ongoing renewable energy revolution is expected to propel the growth of battery energy storage system (BESS) market going forward. Renewable energy comes from natural resources that regenerate more quickly than they are depleted. Renewable energy is being used more frequently as it lowers emissions of pollutants and greenhouse gases that contribute to climate change. In BESS, energy is gathered from the electrical grid or renewable energy sources such as solar and wind, and stored using battery storage technology.For instance, according to a report by the International Energy Agency, a Paris-based autonomous intergovernmental organization, in 2020, the utilization of renewable energy rose by 3%. In addition, the proportion of renewable energy in the world's power generation increased from 27% in 2019 to 29% in 2020. Therefore, the rising demand for clean and renewable energy is expected to drive the growth of the battery energy storage system market.
Technological advancements are a key trend gaining popularity in the battery energy storage system market. Major companies operating in the market are focused on technological advancements to make the battery energy storage system more efficient.For instance, in January 2022, Franklin Whole Home, a US-based privately funded cleantech company, launched its integrated battery and control system based on artificial intelligence technology. The Franklin Home Power solution creates a unique form of enhanced storage by combining its lithium iron phosphate with aGate smart control technology. The aGate control system includes adaptive learning algorithms, enabling it to handle even the most challenging load circumstances successfully.
Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 12+ geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Assessment of Russia - War Impact on agriculture, energy and mineral commodities supply and their direct and indirect impact on the market analyzed in the report.
- Impact of high global inflation on market growth.
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- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high quality data and analysis
Scope
Markets Covered:
1) By Storage System: Front-Of-The-Meter; Behind-The-Meter
2) By Connection Type: On-Grid; Off-Grid
3) By Battery Type: Lithium-Ion Batteries; Advanced Lead-Acid Batteries; Flow Batteries; Other Battery Types
4) By Application: Telecommunication; Data Center; Medical; Industrial; Marine; Other Applications
Companies Mentioned
- BYD Company Limited
- General Electric Company
- Hitachi Ltd.
- Honeywell International Inc.
- Panasonic Corporation
- Samsung SDI Co. Ltd.
- Siemens AG
- Tesla Inc.
- Toshiba Corporation
- ABB Ltd.
- Contemporary Amperex Technology Co. Limited
- LG Chem Ltd.
- Kokam
- Johnson Controls International PLC
- Enersys.
For more information about this report visit https://www.researchandmarkets.com/r/m7eol
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
The key passage is this:
The ongoing renewable energy revolution is expected to propel the growth of battery energy storage system (BESS) market going forward. Renewable energy comes from natural resources that regenerate more quickly than they are depleted. Renewable energy is being used more frequently as it lowers emissions of pollutants and greenhouse gases that contribute to climate change. In BESS, energy is gathered from the electrical grid or renewable energy sources such as solar and wind, and stored using battery storage technology.
For instance, according to a report by the International Energy Agency, a Paris-based autonomous intergovernmental organization, in 2020, the utilization of renewable energy rose by 3%. In addition, the proportion of renewable energy in the world's power generation increased from 27% in 2019 to 29% in 2020. Therefore, the rising demand for clean and renewable energy is expected to drive the growth of the battery energy storage system market.
Battery storage is being driven by the ongoing renewable energy revolution which is still in its nascent stages.
This is why this platform BCI is acquiring a stake in will grow very robustly over the next decade and capitalize on this ongoing renewable energy revolution.
Bottom line: This is a great long-term investment for BCI and its clients.
Below, as municipalities seek to reduce carbon emissions and mitigate fluctuations and disturbances in the power grid, they are increasingly turning to growing infrastructure that generates and stores renewable energy. TE Connectivity’s (TE) Battery energy storage system (BESS) solutions, which improves power allocation flexibility in power generation, power transmission, and power consumption, help meet this increased demand for alternative energy sources.
Building the next generation of energy-efficient infrastructure for BESS will require innovations that increase system voltage, improve power density and provide overall system efficiency. TE offers deep industry expertise and a broad interconnect portfolio of BESS products – including relays, connectors, passives, switches and electrical products – to help solve these complex challenges. These flexible, high-performance components are critical to BESS applications such as solar inverters, power conversion systems, and battery management systems and provide smaller, faster, better and safer connectivity in harsh environments.
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