AIP Management has agreed to acquire a 49% equity stake in a UK-based battery energy storage system (BESS) portfolio from BW ESS.
The portfolio includes three assets having a total capacity of 700MW and a 3.5-hour duration.
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AIP stated that this acquisition represents its first investment in standalone battery storage and is part of its strategy of partnering with industrial experts having complementary expertise.
The portfolio comprises Bramley (100MW), which is operational, and Hams Hall (400MW) and Berkswell (200MW), both of which are under construction.
Upon completion, these assets will be held in the newly formed AssetCo, with BW ESS having a 51% majority stake.
BW ESS will manage the construction and operations of the portfolio.
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By GlobalDataBW ESS has over 500MWh of operational BESS, 3.3GWh under construction, and a development pipeline across six markets.
According to AIP, the investment is fuelled by robust market fundamentals in the UK, particularly the growth of intermittent renewable energy sources and heightened grid constraints, which create a demand for flexible capacity.
Large-scale battery storage plays a crucial role in ensuring system stability, mitigating power price fluctuations, and enhancing supply security, added AIP, an investor in energy and decarbonisation infrastructure.
The portfolio’s strategic location in the Midlands and south-east of England is stated to position it near key electricity load centres and National Grid substations, minimising congestion risks.
Once fully operational, the batteries will be capable of meeting the electricity requirements of 2.3 million homes in the UK for 3.5 hours.
AIP noted that revenue stability is secured through long-term capacity market contracts and offtake agreements, which offer clear cash-flow visibility and protection against potential downturns.
AIP partner and co-head of investments Greg Falzon said: “We are very pleased to form this partnership with BW ESS, which brings highly complementary industrial expertise and operational capabilities to our investment approach.
“Together we will deliver long-term value while enabling the deployment of critical flexibility in the UK power system.”
BW ESS CEO Erik Strømsø said: “We are delighted to welcome AIP as our partner in this strategically important portfolio. We see strong alignment in our approaches and a shared ambition to deliver storage assets at scale.
“With AIP’s infrastructure expertise and long-term perspective alongside our operational capabilities, we are confident this partnership will support the UK’s energy transition and provide lasting benefits to both parties.”
The deal is subject to customary regulatory approvals.
Last year in October, BW ESS entered into an agreement to acquire the remaining stake in Penso Power.
