I Squared to Invest $200 Million for “Last-Mile” Electric Grid Infrastructure in the UK
2024年7月30日 - 8:00PM
ビジネスワイヤ(英語)
- Investment will see a new IDNO, Aurora, launch in the UK
market
- New IDNO will help to drive decarbonization in the UK to reach
net zero targets
- Energy industry leaders to take the helm of new IDNO
business
I Squared, a leading independent global infrastructure
investment manager, announced today that it has signed an agreement
to acquire a controlling interest in Aurora Utilities Limited
(Aurora). Aurora is an Independent Distribution Network Operator
(IDNO) platform that holds a license, regulated by Ofgem, the UK’s
Office of Gas and Electricity Markets, to own and operate
electricity distribution networks across the UK’s liberalized
electricity market.
I Squared will invest $200 million to scale the platform into a
large owner of grid infrastructure, connecting customers to the
electricity network to support the build out of EV charging
stations, battery storage sites, commercial and industrial business
electrification as well as new residential housing
developments.
Solutions to speed up deployment of connection infrastructure
for critical sectors of the UK economy will play an increasingly
vital role in enabling the UK to meet its legally binding
commitment of net zero carbon emissions by 2050. Facilitating the
movement of clean energy generation to support hard to decarbonize
sectors such as heating, industrial processes and transport is a
vital next step in the energy transition.
Today’s announcement marks the second investment from I
Squared’s Energy Transition Infrastructure Fund which focuses
solely on sustainable investments. Through the acquisition of
Aurora, I Squared will adopt, own and operate new electrical
connections, known as “last-mile” infrastructure, such as switch
gear, transformers, circuit breakers and power cables to support
new technologies.
The company will receive long-term, index-linked, regulated
revenues from energy suppliers who use Aurora's assets to
distribute electricity to their customers. The investment will help
a rapidly decarbonizing power grid but which needs to support a
forecast doubling of electricity demand by 2050.
Aurora’s founding management team comprises Simon Reilly as
Chief Executive Officer and Jamie McAinsh as Chief Operating
Officer. Prior to co-founding Aurora, Simon and Jamie built a
successful IDNO for the UK gas distribution network, SGN.
Damian Darragh, Fund Partner, I Squared said: “I Squared’s
acquisition of Aurora signals our commitment to delivering the
infrastructure required to enable electrification of the UK energy
system. We are excited to build a platform to meet the growing
electricity demands in the UK.”
Simon Reilly, CEO at Aurora, commented, “IDNOs must play an
increasingly key role in the electrification of transport, energy
and heating systems to support UK decarbonization across all
sectors of the economy if we are to meet our net zero targets by
2050. I Squared’s backing is testament to this, and with the team’s
proven abilities to accelerate growth in innovative, sustainable
businesses, I am confident that Aurora will go from
strength-to-strength. We look forward to partnering with
organizations who are as passionate about lowering emissions as we
are.”
The Aurora platform will support customers by partnering early
to support the technical design and legal requirements of the
connection equipment thereby mitigating any construction risk and
then adopting the assets once the infrastructure is completely
built. The Aurora platform will complement wider I Squared
portfolio companies, involved with electrification themes including
Conrad Energy, Arriva and Cube Cold.
About I Squared
I Squared is a leading independent global infrastructure
investor with over $40 billion in assets under management. I
Squared is known for developing and building investment platforms
in infrastructure projects that start small and grow big. I Squared
uses its extensive global insights and deep local intelligence to
solve complex problems, foster smarter businesses, serve local
communities, and invest in a more sustainable future to provide
essential services to millions of people around the world.
Headquartered in Miami, I Squared employs 280 people and has
offices in Abu Dhabi, London, Munich, New Delhi, São Paulo,
Singapore, Sydney and Taipei. The firm operates a diverse portfolio
of 85 companies in 81 countries with over 66,000 employees in a
variety of sectors including utilities, energy, digital
infrastructure, transport, environmental infrastructure, and social
infrastructure. You can find out more by visiting:
www.isquaredcapital.com.
About Aurora Utilities
Aurora is a new Ofgem regulated Independent Distribution Network
Operator (IDNO). Licensed to work anywhere in Great Britian, Aurora
is proud to enable economic growth and long-term sustainability by
connecting new developments to the electricity grid. Aurora helps
developers and Independent Connection Providers (ICPs) design
dependable, efficient, safe, innovative and cost-effective
electrical networks so they can connect to the grid in the most
environmentally friendly way possible. The business operates across
five core sectors:
- Electric vehicle charging: This includes cars, buses,
trucks, trains and trams. From service stations and EV points, to
forecourts and super-charging hubs, Aurora is helping to accelerate
the UK to net zero.
- Battery storage and renewables: Aurora adopts BESS
connections and renewable energy projects of all sizes and
voltages, right up to 132 kV, driving the nation’s energy
transition forward.
- Data centres: From smaller edge data centres to huge
hyper-scalers, Aurora has the expertise to get them connected in a
more efficient and sustainable way than ever before.
- Industrial and commercial: This includes offices,
schools, warehouses, factories, hospitals, shops, and more. With
Aurora’s expertise, new buildings will be fit for a greener,
cleaner future.
- Residential: From new housing developments to high-rise
apartments or urban regeneration projects, Aurora is supporting
developers to keep project costs down, connect quickly, and lower
their carbon footprint.
By partnering with Aurora, developers and ICPs benefit from
market-leading asset values, unrivalled customer service, and
industry expertise to help decarbonise developments and create
sustainable local communities and businesses of the future. To find
out more please visit: www.aurora-utilities.co.uk
Disclaimers
This document does not constitute advice or a recommendation or
offer to sell or a solicitation to deal in any security or
financial product. It is provided for information purposes only.
Investing involves risk, loss of principal is possible.
Specific investments described herein do not represent all
investment decisions made by ISQ. The reader should not assume that
investment decisions identified and discussed were or will be
profitable. Specific investment advice references provided herein
are for illustrative purposes only and are not necessarily
representative of investments that will be made in the future.
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I Squared Capital Shelly Hagan +1 (786) 941-5147
media@isquaredcapital.com Aurora Karen Clark
Karen@ascendcomms.consulting ascendcomms.consulting