Engie and Macquarie Group have invested £3m in Connected Energy, a firm which uses spent battery packs from electric vehicles to create on-site energy storage solutions for industrial and commercial companies.
The company says that by using second-life EV batteries, its E-STOR solution can deliver the benefits of battery storage at lower cost to businesses.
As well as security of supply, resilience and peak cost avoidance, storage enables businesses to share revenues from utilities and virtual power plant operators by helping provide grid balancing services.
The Newcastle-on-Tyne-based firm will use the cash to scale its operations, and to fulfil a “tremendous pipeline of demand” for its storage systems, according to CEO Matthew Lumsden.
“In this uncertain energy landscape we look forward to capitalising on the burgeoning need for grid balancing schemes through energy storage, as well as adding to the sustainability of electric vehicles,” he said.
Connected Energy uses second life batteries from Renault vehicles.
As well as Engie and Macquarie, the firm lists Boston Renewables, Bryt Energy, EDF Energy, Efficient Power Solutions, Parker, Statkraft, University of Warwick and Videre as strategic partners.