InfraVia, a leading private capital platform specialised in real assets and technology investments, today announces that it has acquired a majority stake in Mercia Power Response and Balance Power Projects and will merge the two companies into Supernova Power.
The transaction forms a single, scaled, integrated storage and flexible power platform to support the UK’s clean energy transition and accelerate progress towards net zero.
Balance Power is a UK developer of battery storage sites. The founder-owned company has delivered 39 projects since inception across different energy technologies, and currently has a pipeline of over 1.4GW of battery storage assets across the UK.
Mercia Power Response, majority owned since 2015 by Foresight Group, is a provider of flexible power response services. Specialising in developing, constructing and operating flexible gas peaking plants and battery storage assets, it provides energy security for the UK’s grid as it increasingly relies on intermittent renewable energy sources. Mercia currently operates a portfolio of 262MW gas peaking and battery storage sites and has a development portfolio of over 400MW of battery storage sites.
Supernova Power will be UK-focused and scaled to provide a suite of capabilities across development, construction, operations, energy management, and financing, allowing for the accelerated buildout of the existing portfolio of battery storage sites and further acquisitions across flexible power technologies. With ambitions to deliver 2+GW by 2035, it will help the UK address challenges around intermittent renewable energy generation, in particular offshore wind, by aligning renewables production with demand and providing firm backup capacity for periods of low energy generation.
This investment is aligned with InfraVia’s strategy of supporting the energy transition by enabling the acceleration of renewable energy deployment in the UK, and forms part of its commitment to invest €8bn in European infrastructure via its InfraVia European Fund VI.
InfraVia owns a majority equity stake in the combined company, with both Mercia Power and Balance Power management holding minority equity interests. The company will benefit from both management teams’ proven track record of project development, construction, and operations to deliver an ambitious buildout of battery storage and flexible generation.
Phil Thompson, CEO of Balance Power and incoming CEO of Supernova Power (pictured above), said, “This is a proud and exciting milestone for myself and the team at Balance Power and we are delighted to be joining the InfraVia family. Mercia Power has an exceptional team and merging with them for this next part of our journey presents an opportunity to significantly accelerate our growth and impact on the UK’s energy transition. InfraVia’s team, industry knowledge and experience were key to delivering this transaction for which we are very thankful. We are looking forward to working closely with the InfraVia and Mercia teams, as well as welcoming new faces as we grow and expand in line with our ambitions.”
Graham White, CEO of Mercia Power Response and incoming Chairman of Supernova Power, said, “I would like to thank Foresight for supporting the growth of Mercia Power over the last ten years. Critical to that success has been the hard work and dedication from the whole Mercia Power team. Going forward the combination of Balance Power’s market leading site development skills, Mercia Power’s operational experience and existing assets allied with InfraVia’s capital and existing BESS experience delivers a combined business that will be a potent force in the UK BESS market.”
Aymar de Tracy, Partner at InfraVia Capital Partners, stated, “The UK is a mature and sophisticated energy market providing attractive opportunities for investment where battery storage and gas peakers are essential to the stability of the grid and the transition to renewables over the long run. Mercia and Balance Power founders and management teams are key players in this market and we are pleased to partner with them to accelerate the build out of BESS and create a leading UK flexible generation platform.”
