AIP Management acquires 49% stake in UK battery storage portfolio

Core Insights - AIP Management is acquiring a 49% equity stake in a UK-based battery energy storage system (BESS) portfolio from BW ESS, marking its first investment in standalone battery storage [1][3] - The portfolio consists of three assets with a total capacity of 700MW, including one operational asset and two under construction [2][4] - The investment is driven by strong market fundamentals in the UK, particularly the growth of renewable energy sources and increased grid constraints, creating a demand for flexible capacity [3][4] Portfolio Details - The portfolio includes Bramley (100MW, operational), Hams Hall (400MW, under construction), and Berkswell (200MW, under construction) [2] - Upon completion, the assets will be managed by a newly formed AssetCo, with BW ESS holding a 51% majority stake [2] - The strategic location of the portfolio in the Midlands and south-east of England minimizes congestion risks and positions it near key electricity load centers [4] Financial Stability - Revenue stability is secured through long-term capacity market contracts and offtake agreements, providing clear cash-flow visibility [5] - The batteries will be capable of supplying electricity to 2.3 million homes in the UK for 3.5 hours once fully operational [4] Strategic Partnership - AIP and BW ESS aim to deliver long-term value and support the UK's energy transition through their partnership [6][7] - Both companies share a commitment to deploying storage assets at scale, leveraging AIP's infrastructure expertise and BW ESS's operational capabilities [6][7]