- Anchors UBS Asset Management’s innovative energy storage investment strategy
- Forms part of the strategic expansion of the firm’s infrastructure business, providing clients with further sustainable investing solutions in the alternatives space
- Projects are diversified across high value locations within the Electric Reliability Council of Texas (ERCOT) grid
- The diversity of energy sources will help with the resilience of the Texas electricity grid
London/New York, 28 July 2022 – UBS Asset Management today announced the acquisition of five standalone, development-stage energy storage projects in Texas from Black Mountain Energy Storage (BMES). This marks an important milestone following the establishment of the Energy Storage Infrastructure team in 2021, adding significant volume to the development pipeline.
The projects will provide flexibility, responsiveness, and dispatchability to the ERCOT grid once operational in 2024. These capabilities make energy storage a critical component of grid reliability and a key technology for the energy transition, helping ERCOT and the Texas consumers it serves benefit from innovation and more economic sources of energy.
“This is a major milestone in the development of our energy storage investment strategy,” said Tommaso Albanese, Head of Infrastructure, UBS Asset Management. “We look forward to continuing to work with strategic partners to build out the portfolio in markets across the US.”
“This portfolio is comprised of strategically selected, diversified projects in locations which are well-positioned for the current state of the market, as well as the dynamic growth Texas will experience in the coming years,” said, Ken-Ichi Hino, Portfolio Manager, Energy Storage Infrastructure, UBS Asset Management.
“We are excited to have completed this deal with UBS Asset Management, a true innovator in the sustainable alternative investment space,” added Rhett Bennett, Chief Executive Officer of BMES. “Our teams worked seamlessly throughout the execution process, and we look forward to seeing the projects transform under the guidance of UBS Asset Management’s strategic growth and commercialization expertise.
UBS Asset Management was advised on the transaction by Troutman Pepper, Clean Energy Counsel, and Euclid Power.
Notes to editors
Notes to editors
UBS Asset Management
UBS Asset Management is a large-scale asset manager with a presence in 23 markets. It offers investment capabilities and investment styles across all major traditional and alternative asset classes to institutions, wholesale intermediaries and wealth management clients around the world. It is a leading fund house in Europe, the largest mutual fund manager in Switzerland, the second largest fund of hedge funds manager and one of the largest real estate investment managers in the world.
Black Mountain Energy Storage
Black Mountain Energy Storage is a team of energy experts who develop and operate battery energy storage facilities. Founded in 2021, BMES was established to bring reliable, emissions-free energy storage capacity to the electric grid to enhance system reliability and enable greater reliance on renewable generation. We focus on investing in communities and markets where energy storage will provide long-term value to stakeholders.
About the Electric Reliability Council of Texas (ERCOT)
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to more than 26 million Texas customers -- representing about 90 percent of the state’s electric load. As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 52,700+ miles of transmission lines and 1,030+ generation units, including PUNs. It also performs financial settlement for the competitive wholesale bulk-power market and administers retail switching for 8 million premises in competitive choice areas.
ERCOT is a membership-based 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature. Its members include consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers and municipally owned electric utilities.