Posted: 13 Oct 2021, 16:36
Clean energy investor Octopus Renewables has won a Â£ 150million corporate pension mandate from a large UK-based institutional investor.
The Renewable Energy Income Partnership IV (REIP IV) mandate will be used to invest in a range of renewable assets, including solar power in the UK.
Octopus Renewables is now the largest large-scale solar energy investor in Europe, the company said, as well as a leading onshore wind and biomass investor in the UK. It manages a global portfolio valued at over Â£ 3 billion, which falls under the management of Octopus Energy Group following its acquisition of Octopus Renewables earlier this year.
âWe are committed to working with institutions to support the global transition to a net zero economy,â said Alex Brierley, co-director of Octopus Renewables.
“The last IPCC report underlined the scale of the investments needed to tackle the climate crisis and the speed at which these investments must take place if we are to limit the further effects of climate change. “
It follows research by Octopus Renewables last year into the growing interest of institutional investors and pension funds in renewable energy assets. This revealed that the roughly 100 institutional investors with Â£ 5.1 trillion (US $ 6.9 trillion) under management, planned to invest Â£ 544 billion (US $ 742.5 billion) in the sector. over the next ten years. In addition, 80% planned to increase their allocations to renewable energy over the next three to five years.
This new mandate follows a Â£ 250million commitment from pension company Nest and the Renewable Energy Income Partnership III, a Â£ 185million mandate from the National Grid Pension Scheme.
Chris Hulatt, Co-Founder of Octopus Group, said: âWith predictable income, diversification and sustainable investments at the forefront of concerns for institutional investors, renewable energy is an incredibly attractive asset class. Seeing institutional investors continue to choose us as their partner is a fantastic validation of our strategy and we look forward to helping them achieve their investment goals.