L&G NTR Clean Power Fund purchases battery storage project

L&G NTR Clean Power Fund purchases battery storage project

The 50MW / 110MWh Uusnivala Battery Energy Storage System (‘BESS’) will provide valuable grid services to support Finland reaching its 2030 renewables targets

 1^st August 2024

The L&G NTR Clean Power (Europe) Fund (the “Fund”) has successfully completed the acquisition of the ready-to-build Uusnivala BESS project situated in Nivala, Northern Ostrobothnia province, Finland. This milestone marks the Fund’s first battery energy storage project, reaffirming its commitment to invest in and develop diversified clean energy infrastructure. The Fund is a joint partnership between NTR, a leading renewable energy specialist, and Legal & General Investment Management (LGIM), which forms part of Legal & General’s Asset Management division, a major global investor. The transaction was completed by NTR on behalf of the Fund.

The BESS project will have a minimum power rating of c.50 MW, operating at a two-hour capacity (110MWh) and will provide the Finnish grid system with valuable ancillary services to regulate frequency and ensure grid stability. The project was acquired from OX2, one of Sweden’s largest listed renewable energy project developers operating in 11 European markets and Australia.

Finland has seen a rapid increase in the number of clean power projects developed over recent years, and storage projects like Uusnivala will play a crucial role in supporting the country’s journey towards net zero.

At the forefront of the green transition in Europe, Finland is targeting 50% of all energy consumption to come from renewable sources by 2030 with the most recent figures from the Finnish State Treasury, from the end of 2022, reporting that the country is currently at a 42% level.

The Uusnivala BESS is one of the largest and first of its kind to be developed in Finland, with less than 200 MW currently installed across the market. This project is the Fund’s second development in Finland, having announced in October 2023 the acquisition of Pajuperänkangas 86.8MW windfarm which is now operational.

Anthony Doherty, Chief Investment Officer, NTR, commented: “With longstanding experience and expertise in developing and operating BESS projects in Ireland, expansion into the Finnish market is a great addition for NTR. We are constantly looking to diversify the clean energy technologies we use, so Uusnivala is a very attractive addition for us and the Fund. With the addition of this project, the Fund now manages 480MW of onshore and offshore wind, solar and battery energy storage across Spain, France, Sweden, Finland and the UK. This asset offers further geographical and technology diversification to the Fund and is testament to our dedication to drive the European transition to clean energy.”

Bill Hughes, Co-Head of Private Markets, Legal & General Asset Management Division, said: “The energy transition is well under way, with economic and policy frameworks set to continue supporting strong renewables buildout across key markets. While Europe has made significant progress – where in the first half of 2024, 50 percent of public electricity generation came from renewables[1] – grid capacity needs to be doubled[2] if we are to reach our climate targets. In short, there’s much to do, which brings significant investment opportunity.

“Uusnivala BESS marks our first battery storage asset and increases our exposure in Finland. The electricity grid, and transmission assets that support it, are critical to Europe’s net zero ambitions; they are the backbone of the transition. The fund is a key part of our growing private markets platform and with a strong pipeline of capital deployment, we will continue to strengthen and diversify our portfolio, seeking to deliver significant growth opportunities for long-term investors looking to tap into Europe’s energy transition.”

Paul Stormoen, CEO of OX2, said: “This is our first battery energy storage project in Finland, and we are happy to sell it to L&G NTR Clean Power Fund. The project will make a valuable contribution to stabilise the grid as the demands shift following a rapid electrification and transition to a fossil free-energy system.”

– ENDS –

Media Enquiries:  

Gilly Lock/ Louisa Henry

Sodali (NTR PR Advisor)

Telephone: +44 (0) 20 7250 1446

Email: ntr@sodali.com

Jessye Brandon

LGIM

Telephone: +44 (0) 7584 498 775

Email: Jessye.brandon@lgim.com

About the L&G NTR Clean Power (Europe) Fund:

The L&G NTR Clean Power (Europe) Fund combines the stewardship and institutional network of LGIM with the sustainable infrastructure expertise of NTR to tackle the climate emergency. An Article 9 fund with sustainable goals as its objective, the fund provides an opportunity for investors to deploy capital into clean energy projects that will drive Europe’s renewable energy transition. The fund invests in the development, construction and operation of wind, solar and energy storage assets, aiming to offer exposure to a diversified portfolio of proven technologies across a number of European countries.

* The Fund has a sustainability and/or ESG focus in its investment process which may i) limit the Fund’s exposure to or exclude certain companies, industries or sectors ii) impact the Fund’s investment performance compared to other funds that do not apply such criteria and, iii) differ from an investor’s own sustainability and/or ESG criteria.

About NTR Plc:

Established in 1978, NTR is an experienced sustainable infrastructure investor and asset manager driving Europe’s clean energy transition. NTR develops, constructs and operates renewable energy projects in circa 60 locations across seven European countries, specialising in wind, solar and energy storage. With approximately €1.8 billion of capital deployed, NTR has developed, constructed and operated over 3GW of wind, solar and energy storage projects to date.

NTR’s mission of developing, constructing, and operating sustainable infrastructure in a responsible manner means that we incorporate an ESG mindset into every stage of the business. From initial investment assessment through to operational projects, NTR aims to have a positive impact on the environment and society while maintaining strong governance and risk management oversight.

For more information please visit: www.ntrplc.com

About Legal & General’s Asset Management Division

L&G’s Asset Management division is one of Europe’s largest and a major global investor across public and private markets, with £1.2 trillion in assets under management¹.

The division combines deep expertise in asset management and origination with global distribution capabilities to deliver positive outcomes for our clients, which include individual savers, pension scheme members and global institutions, investing alongside L&G’s own balance sheet. As a global investor, we are present where our clients need us – from Hong Kong and Singapore, to major European financial hubs, to Chicago – operating under the Legal & General and LGIM brands.

We provide investment solutions across the full spectrum of asset classes, ranging from index-tracking and active funds to liquidity and liability-based risk management strategies. Through our private markets platform, we utilise our rich heritage and extensive network of partners to offer access to a wide range of purposeful alternative investment opportunities, including specialist real estate, clean energy, infrastructure, venture capital, unlisted equities and private credit.

Our division is underpinned by our enduring commitment to responsible investment, dedicated to creating long-term, sustainable value for our clients and partners.

¹Data as at 31 December 2023.

[1] https://electricity-data.eurelectric.org/

[2] https://www.eurelectric.org/news/ps23_grids/