Gresham House and the UK Infrastructure Bank (UKIB) have solidified their partnership, first announced in March of this year, to bolster investments in renewable energy and storage projects across the United Kingdom.
Their joint endeavor, the Gresham House Secure Income Renewable Energy & Storage LP (SIRES), has received a significant boost with a cornerstone investment of £65 million from Centrica, coupled with a £75 million commitment from the UKIB. The latter contribution aligns with the UKIB's broader commitment of £200 million to support energy storage funds.
SIRES has a laser focus on developing co-located renewable energy generation and short-duration electricity storage facilities. The primary goal is to expedite the integration of these technologies into the National Grid, accomplishing this at a lower cost by sharing grid connection points.
The innovative approach of developing these technologies side by side ensures that excess renewable energy, generated during periods of ample supply, is not wasted. Instead, it is stored for use during times of heightened demand.
For investors, the concept of collocation brings a plethora of benefits. It opens the door to more extensive and diverse revenue streams when compared to single-technology sites. These include income derived from power purchase agreements for renewable projects and optimization contracts with trading entities for battery storage.
The strategy has already proven its efficacy with the 100% owned seed asset, a co-located solar and battery energy storage project located in Hartlepool, County Durham. This pioneering project boasts 50MW of solar capacity and an impressive 75MWh of battery energy storage, with construction recently underway.
Gresham House is not stopping there; the firm is actively exploring a substantial pipeline of other projects where this new capital can be deployed.
Peter Bolton, Investment Director, New Energy at Gresham House, expressed his enthusiasm for the venture, saying, “With 21 operational storage projects and over 13 years of experience in renewable investing, we are excited to see Gresham House Secure Income Renewable Energy & Storage LP flourish. The UK is still in need of substantial renewable energy capacity to support its transition away from fossil fuels, and battery storage stands out as the only commercially viable technology capable of storing excess renewable power, ultimately balancing supply and demand.”
In an era where environmental sustainability is paramount, this partnership between Gresham House and the UK Infrastructure Bank represents a significant stride toward a greener future for the United Kingdom.