By Nick Hedley
BlackRock’s real assets unit is acquiring Australian battery
storage group Akaysha Energy and providing A$1 billion (US$690 million) in
capital to help it build nine advanced storage facilities with a combined
capacity of more than 1GW.
Bloomberg New Energy Finance says 345GW of battery storage
capacity is likely to be added globally by 2030, with much of it in the
Asia-Pacific region. Aside from storing energy from wind and solar plants,
advanced batteries can support electricity grids by providing voltage
management, system strength, inertia, and frequency control services.
BlackRock and Akaysha said in a joint statement battery
storage will play a critical role in getting Australia’s power generation mix
to 82% renewables by 2030.
“As renewable energy infrastructure continues to mature in
Australia, investment is required in battery storage assets to ensure the
resilience and reliability of the grid, especially with the continued
earlier-than-expected retirement of coal-fired power stations,” said Charlie
Reid, BlackRock’s co-head of climate infrastructure for the Asia-Pacific region.
“For our clients, we see tremendous long-term growth
potential in the development of advanced battery storage assets across
Australia and in other Asia-Pacific markets and look forward to working with
Akaysha to ensure an orderly transition to a cleaner and secure energy future.”
This is the first battery storage investment made by
BlackRock’s climate infrastructure business – part of BlackRock Real Assets –
in the Asia-Pacific region.
Established in 2021, Akaysha plans to develop storage
projects in other markets in the region, including in Japan and Taiwan,
according to the statement. It will also consider adjacent renewable energy
opportunities – including developing green hydrogen assets.
Nick Carter, managing director of Akaysha, said, “The Asia-Pacific
region is at the dawn of its energy transition from carbon-emitting fossil
fuels to intermittent renewable resources and we believe a successful shift to
a more sustainable energy future is dependent on the use of large-scale battery
storage.”