Brookfield Renewable and Cambridge Power have signed a framework agreement to develop a portfolio of 985 MW battery energy storage system (BESS) facilities across the UK. The agreement covers more than 800 MW of fully permitted BESS assets and 185 MW of co-located solar for investment and this is planned to be deployed over the next five years. As per the statement, Brookfield will invest significant capital in developing the asset portfolio. Cambridge Power will oversee the assets’ development and operation, with projects slated to begin construction this year and be operational by 2023. This will help the National Grid balance renewable power during peak demand periods and promote the continuing expansion of renewable energy in the UK.

Pigeon Investment Management formed Cambridge Power in 2018 with the goal of developing grid-scale energy storage assets across the UK. Meanwhile, Brookfield’s renewable portfolio includes hydro, wind, solar, and storage projects across North America, South America, Europe, and Asia, with a total installed capacity of over 21 GW and a development pipeline of approximately 62 GW.

In January 2022, Brookfield Renewable announced the $650 million acquisition of US-based clean electricity developer Urban Grid and its project pipeline by its institutional partners. Brookfield Renewable’s capacity in the US is estimated to approximately triple to around 31 GW as an acquisition outcome. Under the terms of the agreement, Urban Grid would continue to operate in the United States under its current brand identity.

REGlobal’s Views: With energy storage becoming a critical part of the power value chain, large developers are opting to set up large energy storage capacity to capture greater market shares in this increasingly important asset class.