Octopus Renewables has won a new £150m (€177m) corporate pension mandate, the Renewable Energy Income Partnership IV (REIP IV), with a large UK-based institutional investor to invest in renewable energy infrastructure.
The fund will invest in a range of renewable assets, including solar and wind across the UK and Europe, helping to boost the UK’s transition to a net zero economy and drive the creation of green jobs.
The mandate comes at a time of increased interest from institutional investors and pension funds in renewable energy assets.
A survey of c.100 institutional investors with $6.9 trillion (€5.96 trillion) under management conducted by Octopus Renewables found that these institutions planned to invest $742.5bn into the sector over the next decade, with 80% planning to increase their allocations to renewables over the next 3-5 years.
The mandate builds on Octopus Renewables’ strong track record of raising institutional funds for investment towards the energy transition.
It follows a £250m commitment from Nest, which manages the pensions of nearly a third of the UK’s workforce, and the Renewable Energy Income Partnership III, a £185m mandate from the National Grid Pension Scheme.
Octopus Renewables co-head Alex Brierley said: “We are committed to working together with institutions to support the global transition to a net-zero economy.
“The latest IPCC report underlined the scale of investment that is needed to tackle the climate crisis, and the speed at which that investment must take place if we are to limit further effects of climate change.
“With COP26 in November, it is vital that the entire industry recognises the enormous amount of action that is required.
“Institutional investors have a key role to play by ensuring their capital is channelled toward assets that have a positive impact on our climate.”
Octopus Group co-founder Chris Hulatt added: “With predictable income, diversification and sustainable investment all at the forefront of institutional investors’ minds, renewable energy is an incredibly attractive asset class.
“To see institutional investors continuing to choose us as a partner is fantastic validation of our strategy and we look forward to helping them achieve their investment goals.
David Hunter of Renewity, the specialist renewable energy research platform, advised on the commitment.
Octopus Renewables is the largest investor of utility scale solar power in Europe, as well as a leading UK investor in onshore wind and biomass, managing a global portfolio valued at more than £3bn.
As part of Octopus Energy Group, the team benefits from a unique ability to originate and manage renewable assets across their lifecycle, whether that be at development, constructional or operational stages.