AI-generated analysis
InfraVia's strategic acquisition of a majority stake in both Mercia Power Response and Balance Power Projects, followed by their merger into Supernova Power, addresses a critical gap in the UK energy market for flexible power solutions to support the transition towards renewable sources. The combined company brings together Mercia’s expertise in operating flexible gas peaking plants and battery storage assets with Balance's strong track record of developing large-scale battery storage projects. This consolidation creates a vertically integrated platform capable of rapid expansion across various technologies, enhancing its role in grid stability and energy management.
Financially, the deal likely leverages InfraVia’s extensive experience in renewable energy infrastructure to provide significant capital for Supernova Power’s growth initiatives. Although the exact valuation is undisclosed, the acquisition and merger terms suggest a substantial investment aimed at scaling operations quickly. The new entity will benefit from synergies between Mercia’s operational capabilities and Balance’s development expertise, enabling more efficient project execution and higher throughput.
In the broader context of UK energy dynamics, Supernova Power's creation disrupts traditional players by offering a comprehensive suite of services that cater to the evolving needs of the grid as renewable generation increases. This move solidifies InfraVia's position in the UK market and sets up Supernova Power to compete effectively against established rivals like Pivot Power or Connected Energy, which are also focused on battery storage solutions. The new entity’s ability to rapidly deploy flexible power assets will be crucial for addressing intermittency issues associated with wind and solar power generation.
Post-close challenges include integrating diverse operations and cultures from Mercia and Balance while maintaining operational efficiency and regulatory compliance in a highly regulated sector. Additionally, securing long-term contracts for grid services and managing the risks of technological obsolescence as new storage technologies emerge will be critical to Supernova Power's future growth trajectory. Despite these hurdles, the combined company is well-positioned to capitalize on the growing demand for flexible power solutions in support of renewable energy deployment across the UK.
InfraVia, a French investment firm, has acquired a majority stake in both Mercia Power Response and Balance Power Projects, merging the two companies to form Supernova Power. The new entity aims to create a UK-focused flexible power platform supporting the energy transition.
| Acquirer | InfraVia (FR) |
| Target | Mercia Power Response, Balance Power Projects (GB) |
| Type | Merger |
| Deal Value | Undisclosed |
| Stake Acquired | 50%+ |
| Closing Date | April 1, 2026 |
| Announcement Date | April 1, 2026 |
| Buy-Side Advisors | Macquarie Capital |
| Sell-Side Advisors | EY |
| Legal Buy-Side Advisors | Ashurst |
| Legal Sell-Side Advisors | Burges & Salmon, Osborne Clarke, Squire Patton Boggs |
Deal Mechanics:
The transaction combines Mercia Power Response and Balance Power Projects into Supernova Power. InfraVia acquires a majority stake in both companies to establish the new entity.
Strategic Rationale:
InfraVia's acquisition is aimed at creating a robust UK-focused flexible power platform that supports grid stability and accelerates renewable energy deployment. The merged company will provide essential flexibility, addressing intermittent renewable generation challenges through battery storage and peaking plants.
Financial Context:
Mercia Power Response operates 262MW of gas peaking and battery storage sites with a development portfolio of over 400MW in battery storage. Balance Power Projects has delivered 39 projects across different energy technologies, including a pipeline of over 1.4GW of battery storage assets.
Advisors:
The deal was advised on the buy-side by Macquarie Capital and Ashurst (legal). EY provided sell-side financial advisory services to Balance Power Projects and Mercia Power Response, while Burges & Salmon, Osborne Clarke, and Squire Patton Boggs served as legal advisors.
Outlook:
Supernova Power will leverage both management teams' expertise in project development, construction, and operations. The new platform is expected to rapidly expand its battery storage portfolio and continue to deliver critical flexibility to the UK energy system.