Aggreko, a UK based power generation equipment supplier, has agreed to acquire Younicos, an energy storage firm, for £40m.

Younicos offers smart energy solutions integrating battery storage, which are modular and scalable.

Founded in 2005 and based in Germany and the USA, Younicos has invested huge amounts in research and development (R&D).

With more than 200 MW of installed storage systems, the company claims of have a strong pipeline across both developed and emerging markets.

For the year 2016, Younicos earned a revenue of £7m, recording an operating loss of £15m.

Aggreko chief executive Chris Weston said: “As energy markets continue to decarbonise, decentralise and become more digital, the integration and control of multiple energy sources, including thermal and renewable, will be essential to ensure the provision of reliable power.

 “As a pioneer of smart energy solutions based on battery storage, Younicos is at the forefront of this trend. Together we are a powerful combination; our scale, fleet and global presence, coupled with a smart energy capability, will allow us to open up new markets and provide our customers around the world with a reliable, cheaper and cleaner source of energy.”

 Younicos chief executive Stephen Prince said: “We are delighted to be joining with a market leading power provider in Aggreko. Batteries are an economically attractive and reliable asset which will play an increasing role as we transition from today’s energy market to the energy market of the future.”

Prior to acquiring Younicos, Aggreko acquired PT Kerta Bumi Teknindo (KBT), a power rental firm, for £25.7m, to extend its operations in Indonesia.

KBT had over 200MW of diesel and gas contracts on hire with PLN, an Indonesian utility company.