The Ireland Strategic Investment Fund is investing €10m in Gore Street Energy Storage Fund as the company makes significant positive progress on the delivery of its battery storage assets in Ireland.
The ISIF said the €10m investment is part of a potential €30m investment commitment.
Gore Street's Irish assets are in Portersdown, near Kill in Co Kildare, and Kilmannock, near New Ross in Co Wexford.
Both sites secured six-year revenue contracts in EirGrid's first ever competitive DS3 auction for battery storage held last month.
ISIF's investment will be used to part-fund the capital expenditure needed to complete the projects in full. The assets are expected to be fully operational in 2021.
The battery storage facilities are mainlyy used to store power for release when needed, particularly during periods of electricity system stress. This was traditionally provided by fossil fuel burning plants.
The ISIF said that batteries provide a carbon-free solution that is increasingly required as higher levels of power are contributed by windfarms and as Ireland seeks to decarbonise its electricity grid.
Today's investment brings ISIF's total exposure to carbon transition investments to €345m.
Paul Saunders, ISIF's Senior Investment Director, said the investment is a strong statement of ISIF's intent to invest to support Ireland's transition to a net zero economy in line with government policy.
"We have a major role to play in helping the Irish economy, Irish people and Irish businesses make a successful transition to a low-carbon future," Mr Saunders said.
He said that will mean thinking differently and doing things differently.
"Backing energy storage to enable greater renewable penetration is a great example of taking meaningful action to reduce carbon emissions. ISIF supports this project because it makes sense commercially and it makes sense for our environment," he added.