I Squared to invest $200 Million for “Last-Mile” electric grid infrastructure in the UK

• Investment will see a new IDNO, Aurora, launch in the UK market
• New IDNO will help to drive decarbonization in the UK to reach net zero targets
• Energy industry leaders to take the helm of new IDNO business

July 30, 2024 07:00 AM Eastern Daylight Time

MIAMI & LONDON–(BUSINESS WIRE)–I Squared, a leading independent global infrastructure investment manager, announced today that it has signed an agreement to acquire a controlling interest in Aurora Utilities Limited (Aurora). Aurora is an Independent Distribution Network Operator (IDNO) platform that holds a license, regulated by Ofgem, the UK’s Office of Gas and Electricity Markets, to own and operate electricity distribution networks across the UK’s liberalized electricity market.

I Squared will invest $200 million to scale the platform into a large owner of grid infrastructure, connecting customers to the electricity network to support the build out of EV charging stations, battery storage sites, commercial and industrial business electrification as well as new residential housing developments.

Solutions to speed up deployment of connection infrastructure for critical sectors of the UK economy will play an increasingly vital role in enabling the UK to meet its legally binding commitment of net zero carbon emissions by 2050. Facilitating the movement of clean energy generation to support hard to decarbonize sectors such as heating, industrial processes and transport is a vital next step in the energy transition.

Today’s announcement marks the second investment from I Squared’s Energy Transition Infrastructure Fund which focuses solely on sustainable investments. Through the acquisition of Aurora, I Squared will adopt, own and operate new electrical connections, known as “last-mile” infrastructure, such as switch gear, transformers, circuit breakers and power cables to support new technologies.

The company will receive long-term, index-linked, regulated revenues from energy suppliers who use Aurora’s assets to distribute electricity to their customers. The investment will help a rapidly decarbonizing power grid but which needs to support a forecast doubling of electricity demand by 2050.

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.

Damian Darragh, Fund Partner, I Squared said: “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.”

Simon Reilly, CEO at Aurora, commented, “IDNOs must play an increasingly key role in the electrification of transport, energy and heating systems to support UK decarbonization across all sectors of the economy if we are to meet our 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 organizations who are as passionate about lowering emissions as we are.”

The Aurora platform will support customers by partnering early to support the technical design and legal requirements of the connection equipment thereby mitigating any construction risk and then adopting the assets once the infrastructure is completely built. The Aurora platform will complement wider I Squared portfolio companies, involved with 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 Britian, 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: