BlackRock Real Assets has made an initial commitment of up to £200m (€233m) in a joint venture to support the build-out of battery storage assets in the UK.

The asset management group has partnered with London-based battery storage developer KX Power to develop, build and operate projects.

The investment is made by the BlackRock Global Renewable Power III fund, which had raised $4.8bn at its final close in April 2021.

The joint venture is the fund’s first investment into the UK’s battery storage market and will look to build out of up to 2GWh of assets.

‘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,’ said David Giordano, managing director and global head of renewable power at BlackRock.

BlackRock has so far invested in more than 400 wind, solar and other climate infrastructure projects through its Global Renewable Power strategy. The team of 66 manages more than $9.7bn of client capital.

‘Our mission is to enable more and more adoption of UK home-grown green power, as embraced by the UK Administration’s Net Zero Strategy and by local councils.

‘Combining KXP’s on-the-ground project development skills and power trading expertise with BlackRock’s knowledge and track record in climate infrastructure, I am certain KXP will become a significant player in the renewable energy market in the UK,’ said Dr. Zhe Zhang, chief executive officer of KXP.