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UK pension funds and insurers plan significant investments in renewable energy

  • July 11 2024
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Invest

UK pension funds and insurers plan significant investments in renewable energy

By Newsdesk
July 11 2024

A new survey by AlphaReal reveals that UK pension funds and insurers are looking to increase their investments across a range of renewable energy technologies over the next five years.

UK pension funds and insurers plan significant investments in renewable energy

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  • July 11 2024
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A new survey by AlphaReal reveals that UK pension funds and insurers are looking to increase their investments across a range of renewable energy technologies over the next five years.

UK pension funds and insurers plan significant investments in renewable energy

Key findings from the survey of institutions managing over £350 billion in assets include:

  • 85% of respondents prefer to invest in multiple renewable energy technologies rather than a single technology
  • 87% plan to increase investments in onshore wind, with 30% expecting significant increases
  • 63% currently invest in battery energy storage systems (BESS), with 57% planning significant increases
  • 54% invest in ground-mount solar, with 56% planning significant allocation increases

Raza Ali, Investment Director of Renewable Infrastructure at AlphaReal, said the findings support their diversified investment approach across renewable technologies.

"Experience in the sector has demonstrated there is a complimentary energy generation profile between ground-mount solar and onshore wind, and adding BESS could provide further diversification and derisking benefits whilst continuing to provide stable returns to investors," Ali said.

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Ed Palmer, CEO and Head of Sustainability at AlphaReal, noted that diversifying across renewable technologies allows investors to capitalize on the range of opportunities available.

UK pension funds and insurers plan significant investments in renewable energy

"AlphaReal has originated and managed a diversified pool of renewable energy assets for over a decade. To date, we have deployed over £1 billion into assets that support the transition to clean energy and that provide alignment with ESG investment objectives," Palmer said.

The survey, conducted in November 2023, included 100 senior investment professionals from UK public and private pension funds and insurance companies.

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