AES and Siemens' joint energy storage venture is valued at a little over $1bn in the Qatar Investment Authority-funded transaction.

The state-owned Qatar Investment Authority (QIA) agreed yesterday to invest $125m in Fluence, a Germany-based energy storage joint venture between power producer AES Corporation and industrial technology and appliance manufacturer Siemens.

QIA’s investment will value Fluence at just over $1bn, with AES and Siemens each retaining a stake of approximately 44% in the company.

Founded in 2018, Fluence has developed modular, cube-shaped systems that store energy from renewable energy installations sized from 1 MW to 500 MW. They use digital intelligence software to generate data and help enhance performance.

The investment will support the delivery of new products in addition to rolling out Fluence’s existing offering into more geographical markets. It recently integrated artificial intelligence into its software to help clients monetise excess energy through auctions on trading markets.

Andrés Gluski, president and chief executive of AES, said: “Energy storage is playing a crucial role in enabling markets and organisations to achieve their goals for a carbon-free energy future.

“We are very pleased with Fluence’s success and today’s announcement is an important milestone toward maintaining Fluence’s global leadership in energy storage and achieving its growth potential.”

Matthias Rebellius, CEO of Siemens’ smart infrastructure division, added: “Energy storage is a key pillar of the energy transition. Siemens has defined this as a significant long-term growth area. QIA’s investment will support Fluence with its successful development in a dynamic market.”