London‑based asset manager Gresham House is assembling a new vehicle aimed at raising roughly €1 billion to channel capital into battery‑storage projects. The fund would give pension funds, sovereign wealth entities and other institutional investors a dedicated conduit to the fast‑growing market for large‑scale energy storage, a segment that has attracted heightened interest as renewables displace fossil generation.

Battery‑storage systems are becoming essential for grid stability, smoothing intermittent solar and wind output. By aggregating demand from utilities, data centres and commercial firms, the fund could tap a pipeline of projects that are currently underserved by traditional private‑equity structures. Investors stand to capture returns linked to long‑term power purchase agreements, capacity payments and ancillary service revenues.

The vehicle targets assets that can deliver both energy arbitrage and grid‑balancing services, positioning the fund to benefit from policy incentives aimed at decarbonising power systems. With Europe committing to net‑zero targets, regulators are increasingly mandating storage capacity, creating a tailwind for projects that meet stringent performance criteria.

If Gresham House secures sufficient commitments, the fund could close within the next year, adding a sizable tranche of capital to Europe’s storage rollout. Successful fundraising would signal market confidence and may prompt rival managers to launch similar vehicles, intensifying competition for high‑quality assets and potentially driving up valuations.