Global alternative investment manager Apollo Global Management announced today a $150 million equity commitment to energy storage solutions-focused technology provider FlexGen Power Systems.
Energy storage solutions are emerging as a major opportunity for investors, as they form one of the key building blocks for the rapidly expanding clean energy transition, given the intermittent generating nature of many sources of renewable energy, such as wind and solar, and the need to satisfy round the clock energy demand, while ensuring that energy is not wasted.
Olivia Wassenaar, Senior Partner and Co-Lead of Natural Resources at Apollo, said:
“Energy storage assets play a crucial role in the transition to an economy powered by intermittent renewable energy sources. This transition to renewable power is happening at a time where reliability and resiliency are more important than ever for the grid in the face of increasing extreme weather events. FlexGen’s energy storage solutions bridge the gap of reliability for the grid and help accelerate the adoption of renewables by shifting renewable power consumption to times when it is needed most.”
Founded in 2015, FlexGen offers integration services and software technology for energy storage solutions in the U.S. and globally, providing energy management software and power electronics for utility-scale storage projects. The company’s proprietary software platform allows energy storage owners to deploy various power market strategies and combine storage solutions with any form of generation.
Kelcy Pegler, Jr., CEO of FlexGen, said:
“Our work with Apollo will accelerate FlexGen’s growth, and the capabilities we can offer going forward while establishing the bankability that the market values when making energy storage investments. We are well-positioned at the most critical intersection of the clean energy transition—energy storage. We have spent the past decade building the most advanced integration solutions in the market—and now that market is ready to take-off.”
The announcement marks the latest in a series of energy transition-focused initiatives by Apollo, including an investment last year in US offshore wind developer US Wind, and the formation of a joint venture with Altius Renewable to accelerate the development of Great Bay Renewables, a leading provider of renewable energy development capital. Earlier this month, Apollo launched a strategic partnership with Johnson Controls, aimed delivering decarbonization and energy efficiency solutions for commercial buildings.
The new investment is being made in partnership with FlexGen’s existing investors, Altira Group and the founding investment group led by Jerry Miller and Mark Dreyfus.
Apollo Partner Trevor Mills said:
“We are excited to work with Kelcy, Yann, Pasi, Alan, and the entire FlexGen team to support their continued growth. We see tremendous opportunities for growth and technological innovation in the energy storage sector as the grid relies increasingly on renewable energy. FlexGen’s engineering expertise and leading HybridOS software solution position it as an ideal partner for those looking to develop and operate energy storage systems.”
The post Apollo Invests $150 Million in Energy Storage Software Provider FlexGen appeared first on ESG Today.
