BlackRock enters joint venture with KXP to boost UK battery storage with £200m spending pledge
BlackRock has committed up to £200m to support the development of battery storage projects across the UK.
Its assets division, BlackRock Real Assets, has entered into a joint venture with KX Power (KXP) to build and operate up to 2 gigawatt hours (GWh) of battery storage.
Both firms consider battery energy storage systems to be a key method for reducing the intermittency of natural resources, such as wind and solar power.
This makes them complementary to renewable energy infrastructure, with the government committing to significantly ramping up renewable energy generation over the coming decades as part of its recently unveiled supply security strategy.
This includes raising offshore wind power from 11GW to 50GW by 2030, doubling hydrogen capacity up to 10GW from 2030, and increasing solar power capacity from 14GW potentially fivefold to 70GW by 2035
The government has also pledged to reach net zero carbon emissions over the next three decades.
BlackRock’s initial commitment to the joint venture could help power over 2m homes annually, and remove 16m tons of CO2 over the lifetime of the projects.
David Giordano, managing director and global head of renewable power at BlackRock said: “With our JV investment in KXP, we are delighted to be driving the development and expansion of the UK’s battery storage market. On behalf of our clients, we see vast opportunity in the development of a sophisticated network of battery storage assets across the UK and in other regions across the globe to facilitate the transition towards a green energy future.”