A new Independent Distribution Network Operator (IDNO), Aurora, will launch in the UK and help drive decarbonisation to reach net zero targets.
I Squared, a leading independent global infrastructure investment manager, announced 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 electric vehicle (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.
The 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 centres, residential, commercial and industrial.
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