Infrastructure Funds Position Themselves on European Battery Storage Platforms

Europe's major energy utilities — Enel, RWE and Iberdrola — were the first to invest in battery energy storage systems (BESS, Battery Energy Storage System) on the continent, more than a decade ago. Their initial engagement was driven more by strategic and technical motivations than commercial ones. These groups leveraged their consolidated balance sheets and internal engineering capabilities, project development expertise, electricity trading market positioning and asset management skills to develop and operate the first generation of storage projects.

An asset class now accessible to institutional capital

This pioneering dynamic enabled battery storage to establish itself as an investable asset class, now accessible to private institutional capital. Infrastructure funds are today seeking to acquire or build large-scale BESS development platforms with advanced market access capabilities. By supporting agile operators focused on asset optimization, these financial sponsors enable sector institutionalization and accelerated scale-up in still fragmented markets.

The dominant model consists of taking stakes in developer platforms to gain access to their project pipelines. Sponsors then provide financing during construction phases or for conversion of existing assets. This approach combines exposure to development with control over execution risk.

Island Green Power's acquisition illustrates the sector's transformation

Macquarie Asset Management's acquisition of Island Green Power, finalized in May 2025, concretely illustrates this trend. This company, based in the United Kingdom, develops solar and battery storage projects. The transaction positions Macquarie Asset Management as a direct player in BESS platform development on the European market.

This movement by infrastructure funds toward battery storage marks a structural transformation of the sector. What was once the domain of large vertically integrated groups is gradually becoming accessible to specialized operators financed by long-term capital. The persistent fragmentation of European markets provides the landscape on which these sponsors are seeking to accelerate their development platform scale-up.