- Investment will see new IDNO, Aurora, launch in the UK market
- New IDNO will help drive decarbonisation in the UK to reach net zero targets
- Energy industry leaders to take the helm of new IDNO business
I Squared, a leading independent global infrastructure investment manager, announced today that it has acquired a controlling interest in Aurora Utilities Limited (Aurora). Aurora is an Independent Distribution Network Operator (IDNO) platform that holds a license, regulated by Ofgem, to own and operate electricity distribution networks across the UK under a liberalised market.
I Squared will invest $200 million to scale the platform into a large owner of grid connections, connecting customers to the electricity grid to support the roll out of EV charging infrastructure, battery storage, renewable energy projects, and data centres, as well as new residential and commercial developments.
These key growth markets play a vital role in enabling the UK to meet net zero targets by transitioning away from fossil fuels, and instead adopting green electricity to fuel the country’s heating and transportation needs.
Today’s announcement marks the second investment in I Squared’s Energy Transition Infrastructure Fund focused on climate solutions. Through the acquisition of Aurora, I Squared will adopt, own and operate new electrical connection infrastructure, which is known as “last-mile” infrastructure. This includes switch gears, transformers, and circuit breakers to enable the connection of new renewable energy sources, and improve the efficiency of the electricity distribution network.
They will receive long-term, index-linked, regulated revenue from energy suppliers who use Aurora’s assets to distribute green electricity to their customers. This investment will help meet the growing electricity demand in the UK, which is expected to double by 2050 as the country works toward its decarbonisation objectives.
Aurora’s founding management team comprises Simon Reilly as Chief Executive Officer and Jamie McAinsh as Chief Operating Officer. Prior to co-founding Aurora, Simon and Jamie built a successful IDNO for the UK gas distribution network, SGN.
“I Squared’s acquisition of Aurora signals our commitment to delivering the infrastructure required to enable electrification of the UK energy system. We are excited to build a platform to meet the growing electricity demands in the UK.” said Damian Darragh, Fund Partner at I Squared.
Simon Reilly, CEO at Aurora, commented, “IDNOs play a key role in the electrification of transport, energy and heating systems, and they will support the UK in decarbonising all sectors of the economy to meet net zero targets by 2050. I Squared’s backing is testament to this, and with the team’s proven abilities to accelerate growth in innovative, sustainable businesses, I am confident that Aurora will go from strength-to-strength. We look forward to partnering with organisations who are as passionate about lowering emissions as we are.”
Under I Squared’s ownership, Aurora will focus on five types of grid connections: electric vehicle charging, battery storage, data centers, residential, commercial and industrial. The platform mitigates any construction risk by taking on control of the asset once the infrastructure is completely built. The Aurora platform complements the wider I Squared portfolio, which plays on electrification themes including Conrad Energy, Arriva and Cube Cold.
About I Squared
I Squared is a leading independent global infrastructure investor with over $40 billion in assets under management. I Squared is known for developing and building investment platforms in infrastructure projects that start small and grow big. I Squared uses its extensive global insights and deep local intelligence to solve complex problems, foster smarter businesses, serve local communities, and invest in a more sustainable future to provide essential services to millions of people around the world. Headquartered in Miami, I Squared employs 280 people and has offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei. The firm operates a diverse portfolio of 85 companies in 81 countries with over 66,000 employees in a variety of sectors including utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure. You can find out more by visiting: www.isquaredcapital.com.
About Aurora Utilities
Aurora is a new Ofgem regulated Independent Distribution Network Operator (IDNO).
Licensed to work anywhere in Great Britain, Aurora is proud to enable economic growth and long-term sustainability by connecting new developments to the electricity grid.
Aurora helps developers and Independent Connection Providers (ICPs) design dependable, efficient, safe, innovative and cost-effective electrical networks so they can connect to the grid in the most environmentally friendly way possible.
The business operates across five core sectors:
- Electric vehicle charging: This includes cars, buses, trucks, trains and trams. From service stations and EV points, to forecourts and super-charging hubs, Aurora is helping to accelerate the UK to net zero.
- Battery storage and renewables: Aurora adopts BESS connections and renewable energy projects of all sizes and voltages, right up to 132 kV, driving the nation’s energy transition forward.
- Data centres: From smaller edge data centres to huge hyper-scalers, Aurora has the expertise to get them connected in a more efficient and sustainable way than ever before.
- Industrial and commercial: This includes offices, schools, warehouses, factories, hospitals, shops, and more. With Aurora’s expertise, new buildings will be fit for a greener, cleaner future.
- Residential: From new housing developments to high-rise apartments or urban regeneration projects, Aurora is supporting developers to keep project costs down, connect quickly, and lower their carbon footprint.
By partnering with Aurora, developers and ICPs benefit from market-leading asset value payments, unrivalled customer service, and industry expertise to help decarbonise developments and create sustainable local communities and businesses of the future.
Fast. Flexible. Straightforward.
Aurora – The last mile to net zero
Contacts
Karen Clark
Karen@ascendcomms.consulting
07340953338
