Target Information

Foresight Energy Infrastructure Partners II S.C.Sp ("FEIP II"), an energy transition fund managed by Foresight Group LLP, has successfully acquired a 49% stake in Harmony Energy Income Trust plc ("HEIT"). The acquisition is complemented by Blackmead Infrastructure Limited, which secured the remaining 51%, effectively taking HEIT private. This strategic move positions FEIP II to control the largest operational two-hour duration Battery Energy Storage System (BESS) portfolio in the UK, which includes eight fully operational, grid-connected assets distributed across England and Scotland, boasting a total capacity of approximately 400MW/800MWh.

Industry Overview

The UK's commitment to transitioning to a low-carbon economy is increasingly reliant on advanced energy storage solutions. As Europe aims for a more sustainable energy system, battery storage technologies have become essential for ensuring grid stability and facilitating decarbonisation efforts. The growing demand for renewable energy sources necessitates enhanced storage solutions capable of managing intermittent supply.

The BESS industry within the UK is set to flourish, primarily driven by government incentives and a shift towards greener energy portfolios. Current engagement in the sector focuses on scaling up technologies that support renewable sources while promoting energy independence. Consequently, infrastructure investments within the battery storage space are being prioritized as consumers and businesses seek reliable, low-emission solutions.

Furthermore, the establishment of a pan-European battery storage platform is anticipated as key markets within Europe, such as Germany, Italy, Spain, and the Nordics, are expected to mature. This alignment with national and EU objectives for carbon neutrality underscores the strategic importance of investing in BESS solutions, fostering a multi-faceted energy landscape.

Rationale Behind the Deal

This acquisition aligns perfectly with FEIP II's sustainability objectives by facilitating the displacement of fossil fuel generation during peak demand periods, ultimately enhancing grid efficiency. By securing a high-quality, yielding portfolio in a mature market, FEIP II is poised to capitalize on future developments in other promising BESS markets within Europe.

The investment opens substantial possibilities for growth that will underscore FEIP II’s commitment to high-quality, revenue-generating infrastructure, ultimately contributing to the overarching goal of an energy transition that is efficient and sustainable.

Information About the Investor

Foresight Group LLP, a leader in investment management, specializes in sustainability-focused infrastructure projects. Their flagship fund, FEIP II, is actively committed to facilitating the shift towards low-carbon energy systems through strategic investments in transformative technologies. The organization recognizes the crucial role of battery storage in achieving renewable energy targets and has a long history of investing in clean technology and infrastructure.

With extensive expertise in the energy sector, Foresight Group is keen on fostering innovative strategies that bolster marketable efficiencies. This positions them uniquely to manage and support growth across energy-related investments, demonstrating a robust track record in both operational and financial contexts.

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The recent acquisition of HEIT by FEIP II is viewed as a highly strategic move within the energy infrastructure sector, providing immediate scale and robust economic benefits. By embedding itself in the largest operational BESS portfolio in the UK, FEIP II demonstrates a foresight for future energy requirements and positions itself favorably against competitors in an increasingly dynamic market.

From an investment perspective, the deal indicates a strong commitment to sustainability and a data-driven approach to energy management. This sets a benchmark for future investments as FEIP II can leverage the insights gained from this portfolio to explore growth opportunities in emerging markets.

Overall, this acquisition reflects a well-calculated step toward enhancing FEIP II's portfolio in line with long-term sustainability goals. The strategic integration of innovative battery solutions will likely yield dividends as the demand for energy storage continues to rise in tandem with the global push for renewable solutions.

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