La Caisse

, formerly CDPQ, has agreed to acquire Australian renewable energy and battery developer Edify Energy Pty Ltd. in an investment worth about $1 billion.

Binding agreements have been entered for the purchase, the Canadian

pension fund

said in a statement Monday. The investment will cover the acquisition and provide equity for two ready-to-build solar-and-battery projects that have offtake agreements with

Rio Tinto Ltd.

and the Australian government.

La Caisse is one of the world’s biggest pension funds, with about $500 billion in assets, and had invested $13 billion in Australia as of the end of 2024, including in electricity transmission network operator TransGrid and power utility AGL Energy Ltd. The two Edify projects will deliver 900 megawatts of generation capacity and 3,600 megawatt-hours of storage, and the funding will also support the renewables developer’s pipeline of more than 11 gigawatts, La Caisse said.

It comes as demand for energy storage surges globally. Battery capacity is forecast to increase 14-fold to 1,200 gigawatts by 2030, under the International Energy Agency’s ‘Net Zero Emissions by 2050’ scenario.

“Edify will accelerate the delivery of large-scale renewable and storage projects that strengthen the grid and advance decarbonization,” said Emmanuel Jaclot, executive vice-president and head of infrastructure and sustainability at La Caisse.

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ICA Partners and Clifford Chance advised La Caisse, while Lazard Australia and Herbert Smith Freehills Kramer advised Edify.

Bloomberg.com