The National Wealth Fund has committed up to £200 million as part of a £500 million package to back battery storage projects across Britain, co-investing with Aware Super and Equitix in Eelpower. Construction of three projects starts immediately and the investment aims to deliver at least 1GW toward a government target of up to 27GW by 2030. Grid-scale storage is needed to reduce costly curtailment of renewable supply. Some industry figures question the necessity given private appetite, and analysis shows about 61GW of storage is already seeking grid connections by 2030. Revenues have been volatile and battery funds have struggled in public markets.
The government's National Wealth Fund (NWF) has pledged up to £200 million to support new battery storage projects across Britain, as part of a £500 million investment package designed to strengthen the country's clean energy infrastructure. The deal sees the NWF co-invest with Australian pension fund Aware Super and infrastructure investor Equitix in Eelpower, a specialist battery developer. Construction of three new storage projects will begin immediately, with several more expected to receive the green light later this year. The NWF said its decision was driven by the urgent need for more grid-scale storage to manage growing renewable output.
The government's power system regularly pays wind farms to switch off because the network cannot handle excess supply - a practice known as curtailment - costing consumers hundreds of millions of pounds each year. "Batteries are a priority area for the NWF," a spokesperson said. "They provide the flexibility and security required to balance the grid as we transition to clean energy." The government has set a target of installing up to 27GW of battery capacity by 2030, a sixfold increase from the current 4.5GW. The investment in Eelpower is intended to deliver at least 1GW. However, the move has raised eyebrows among some industry figures, who argue there is already strong private appetite for battery projects. One senior developer told The Times: "It is a little surprising. There is no shortage of equity and debt investors in the sector." Analysis by Cornwall Insight suggests as much as 61GW of battery storage is already in the pipeline, seeking grid connections by 2030 - more than double the government's target.
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