We have supported NextEnergy Capital and its private fund NextEnergy UK I (NEUK I) with the acquisition of a portfolio of three operational battery energy storage system (BESS) projects.
Acting as technical advisor, our team provided support in relation to the acquisition of the 107MW portfolio of operational BESS assets
Clare McDowell, our Senior Energy Storage Advisor, said: “The market for operational battery storage assets is continuing to develop, and transactions like this provide valuable insight into the practical considerations involved in assessing assets that are already operating.
“Our work for Next Energy not only involved reviewing the performance of the assets against their contractual guarantees, but also considering their future potential, including value creation opportunities for augmentation and optimisation.
“Through supporting multiple GWh of operational asset transactions, our team has built increasingly valuable experience of the challenges that can emerge during the operation of BESS assets and our technical assessment process. The lessons learned from these projects are strengthening our capability to review operational assets effectively and will be directly relevant as the market continues to mature and similar challenges emerge in future transactions.”
As the battery storage sector matures and an increasing number of projects move from development and construction into long-term operation, the assessment of operational performance and future optimisation opportunities is becoming an increasingly important consideration for investors and asset owners.
Our experience across multiple operational asset transactions has provided valuable insight into the practical challenges that can arise when reviewing assets that are already in operation. Identifying and resolving these challenges throughout the transaction process has significantly strengthened the company’s capability to assess operational assets and will help inform our approach to future projects.
Dario Hernandez, Head of Energy Storage at NextEnergy Capital said: "Natural Power was a trusted partner throughout the acquisition process. The team's deep technical expertise, pragmatic approach and operational experience in battery storage assets gave us confidence in our assessment of the portfolio and helped ensure a smooth and efficient transaction process. We value their ability to combine detailed technical analysis with a clear understanding of the commercial considerations that matter to investors."
This acquisition represents an important milestone for NEUK I, further advancing the fund’s investment strategy through the addition of high-quality operational BESS assets that complement its existing solar and storage investments. Since its launch, the Fund has successfully built and acquired a diversified portfolio of more than c.1GW of UK renewable energy infrastructure assets, supporting the country’s energy transition while targeting attractive risk-adjusted returns for investors.