Triodos Energy Transition Europe Fund has expanded its joint venture (JV) with battery energy storage system (BESS) company GridBeyond with a new multi-million investment commitment.
Triodos has committed €11.25 million (£9.395 million) to the JV, named GridBeyond Storage, as part of a total £10.44 million investment. Following this new funding injection, GridBeyond Storage is now preparing to finance two ready-to-build BESS projects in Ireland and Scotland, markets in which it has seen previous success.
The two firms entered into their 50/50 joint venture in 2022, with the aim of developing behind-the-meter (BTM) storage projects for commercial and industrial clients in the UK and Ireland. Since the launch two years ago, the JV has brought two BESS projects to fruition, both for industrial customers in the glass manufacturing sector. The first of these projects, a 1MW/1.1MWh BESS for CareyGlass located in the Republic of Ireland, went live on March 2023, while a second 8.MW/8.3MWh development for O-I Glass in Scotland is currently under construction, with an expected commissioning date of January 2025.
Michiel van Beek, head of project equity at Triodos Investment Management, said the firm was pleased to expand the partnership, noting: “This next phase of our partnership is a highly promising development for our fund and our investors. By continuing to invest in BESS projects in the UK and Ireland, we are not only accelerating to a net-zero future but also positioning the fund to benefit from the growing demand for flexible energy solutions.”
GridBeyond deputy CEO Richard O’Loughlin agreed, adding: “It’s great to have the opportunity to deliver further flexible energy across the UK and Ireland to support the energy transition to a net-zero future.”
A vote of confidence for BESS investors
The news of an investment of this scale, alongside other hints of good news, is a welcome update after months of concerns about the future of investment in the BESS sector.
Research consultancy Cornwall Insight has forecast an optimistic future for the sector, suggesting that BESS revenues are set to rebound by the year 2026 after “an extended period of underperformance”. The firm projects that annual revenues for 2-hour assets will increase from around £96/kW in 2025 to £108/kW by 2026, with other battery durations set to experience similar levels of growth in this period.
The Irish BESS market, in particular, is predicted to jump immensely in capacity. A separate piece of research from Cornwall Insight predicts that short-to-medium duration battery storage capacity in Ireland’s single electricity market (SEM) will increase fivefold by 2030.
This comes after one of the largest BESS investment funds, Harmony Energy Income Trust (HEIT), announced that it had opened the second stage of its portfolio sale process, raising questions about the role of listed funds in the BESS market.
A source told our sister site Energy-Storage.News that HEIT’s choice to sell its entire BESS portfolio, alongside the fund’s continuing revenue struggles, raises fundamental questions about the suitability of BESS for publicly listed funds like HEIT, noting that “the bigger question this whole thing raises is whether these funds are the best way to raise money in the market for BESS projects.”
