InfraVia has acquired a majority stake in Balance Power and Mercia Power Response, with the two companies now set to merge into a new UK-focused flexible power platform called Supernova Power.
The deal brings together two established businesses in the battery storage and flexible generation market, with InfraVia as a key financial backer. With that backing, the new firm will have a significant warchest and experience to further grow its pipeline of battery storage projects and flexible generation assets.
Supernova Power is set to go up against the likes of Statera Energy in the flexibility market, which has grown in prominence in the UK over the last few years. That’s because it’s seen as key to the future of the energy market – especially as the UK decarbonises. In fact, it’s estimated that flexibility tech could help cut UK energy system costs by £70bn by 2050.
The plan is to combine Balance Power’s development pipeline with Mercia’s operating portfolio and experience in flexible power response services. The new business will offer capabilities across development, construction, operations, energy management and financing, with ambitions to deliver more than 2GW by 2035.
Balance Power says it has delivered 39 projects since launch across different energy technologies and currently has a pipeline of more than 1.4GW of battery storage assets across the UK. Meanwhile, Mercia Power Response, which has been majority owned by Foresight Group since 2015, operates a portfolio of 262MW across gas peaking and battery storage sites. It also has a development portfolio of more than 400MW of battery storage assets.
The new firm is set to be led by Phil Thompson, a regular guest at the Powered On Live conference, and the current CEO of Balance Power. He noted, “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.”
A bigger platform for flexible power
The creation of Supernova Power reflects a broader shift in the market. Battery energy storage has attracted substantial investor interest in recent years, but standalone pipelines are no longer enough on their own. As the sector matures, investors are increasingly looking for platforms that can do more than simply secure sites and planning permission.
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.”
There will, of course, be continued debate around the role of gas peaking assets in a net zero energy system. But for now, investors and operators continue to argue that flexible thermal generation still has a role to play in maintaining reliability during periods when renewable output is low and long-duration storage remains limited.
