The investment follows BlackRock Real Assets’ acquisition of Australian battery energy storage systems and renewable energy developer, Akaysha Energy.

The $1 billion commitment is expected to support the construction of battery storage assets across Akaysha’s nine projects in Australia’s National Electricity Market (NEM) and marks the first such investment made by BlackRock’s climate infrastructure business in the Asia-Pacific region .

“As renewable energy infrastructure continues to develop in Australia, investment in battery storage assets is needed to ensure grid resilience and reliability, particularly with the continued earlier-than-expected retirement of coal-fired power stations” , said Charlie Reid, APAC co-head of climate infrastructure.

"For our customers, we see huge long-term growth potential in the development of advanced battery storage assets in Australia and other markets in the Asia Pacific region, and we look forward to working with Akaysha to ensure an orderly transition to cleaner and safer energy future.”

Established in 2021, Akaysha's long-term plans include developing future energy storage projects in other markets in the Asia-Pacific region, with a short-term focus on Japan and Taiwan. The company also has plans to add adjacent renewable energy opportunities to its portfolio in multiple markets.

Bloomberg New Energy Finance forecasts that 345 GW of battery storage capacity will be added globally by 2030, with the Asia-Pacific region expected to contribute the lion's share of deployment, representing an investment opportunity of around US$400 billion dollar.

BlackRock expects Australia to establish itself as a renewable energy superpower, becoming a key market for the development of battery storage technology both in the Asia-Pacific region and globally.

"The Asia-Pacific region is at the dawn of its energy transition from carbon-emitting fossil fuels to intermittent renewables, and we believe that a successful transition to a more sustainable energy future depends on the use of large-scale battery storage," said Nick Carter , Managing Director of Akaysha.

"By leveraging BlackRock's global capabilities and expertise in climate infrastructure, we are excited to deliver on our ambitions to accelerate the deployment of energy storage technologies at scale that will mitigate the variability of renewable generation and ensure grid reliability and sustainability of energy system networks in Asia and the Pacific Ocean.

Last August, BlackRock Real Assets acquired an equity stake in Australian electric vehicle charger provider JOLT Charge (JOLT), pledging to provide over $100 million in capital through business stages to finance the construction of JOLT's charging infrastructure.

Maja Garatsa Djurdjevic

Maya's career in journalism spans more than a decade in finance, business and politics. Now an experienced editor and reporter in all elements of the financial services sector, before joining Momentum Media, Maya reported for several established news outlets in South East Europe, looking at key processes in post-conflict societies.