UK pension funds plan to increase allocation to renewables
October 20, 2020

Over the next five years, 68 percent of UK pension fund investors expect allocations to renewable energy to increase, compared to just 10 percent who expect it to fall. These are the findings of new research from Alpha Real Capital LLP, a specialist manager of secure income real assets.

When it comes to the UK, 74 percent of those surveyed already invest in the renewable energy sector. However, only 30 percent describe it as mature, with 52 percent classifying it as developing and 18 percent as early stage, while the top two investment areas for the next five years are expected to remain as solar and onshore wind.

The most important attributes, says Alpha, are seen as the ability to invest in strategic infrastructure, access attractive risk adjusted returns, benefit from asset diversification, and the ability to deliver stable income returns.

Will Morgan, Head of Renewables at Alpha Real Capital said: "Our research supports the view that professional pension fund investors see the UK renewables sector as offering attractive investment opportunities, and plan to increase their exposure here. We are seeing growing interest from a range of pension funds in our renewable energy investments."

Alpha's renewables business invests in the majority of UK renewable energy infrastructure types including wind, solar, hydro and other low carbon energy resources. It has completed over 50 transactions and invested more than £550 million into a portfolio of over 225MW and more than 100 sites, providing predictable, long term cash flows to investors.

Alpha's renewables portfolio now generates over 340 GWh of wind, solar and hydropower - enough clean power for over 110,000 homes. Alpha estimates the annual CO2 offset is equivalent to planting almost 50 million trees.

Phillip Rose, CEO at Alpha Real Capital said: "Renewable energy infrastructure is an attractive secure income asset with predictable cash flows, significant inflation linkage and good duration that complements Alpha's other secure income platforms in commercial ground rents, social infrastructure and real asset-backed debt."

Boris Mikhailov, Head of Client Solutions at Alpha Real Capital, added: "With more pension schemes looking to become carbon-neutral, investment in renewable energy infrastructure has significant ESG benefits and can help schemes on their journey to becoming carbon-neutral. Alpha's renewables investments currently offset over 75,000 tonnes of CO2 per annum."





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Over the next five years, 68 percent of UK pension fund investors expect allocations to renewable energy to increase, compared to just 10 percent who expect it to fall. These are the findings of new research from Alpha Real Capital LLP, a specialist manager of secure income real assets.

When it comes to the UK, 74 percent of those surveyed already invest in the renewable energy sector. However, only 30 percent describe it as mature, with 52 percent classifying it as developing and 18 percent as early stage, while the top two investment areas for the next five years are expected to remain as solar and onshore wind.

The most important attributes, says Alpha, are seen as the ability to invest in strategic infrastructure, access attractive risk adjusted returns, benefit from asset diversification, and the ability to deliver stable income returns.

Will Morgan, Head of Renewables at Alpha Real Capital said: "Our research supports the view that professional pension fund investors see the UK renewables sector as offering attractive investment opportunities, and plan to increase their exposure here. We are seeing growing interest from a range of pension funds in our renewable energy investments."

Alpha's renewables business invests in the majority of UK renewable energy infrastructure types including wind, solar, hydro and other low carbon energy resources. It has completed over 50 transactions and invested more than £550 million into a portfolio of over 225MW and more than 100 sites, providing predictable, long term cash flows to investors.

Alpha's renewables portfolio now generates over 340 GWh of wind, solar and hydropower - enough clean power for over 110,000 homes. Alpha estimates the annual CO2 offset is equivalent to planting almost 50 million trees.

Phillip Rose, CEO at Alpha Real Capital said: "Renewable energy infrastructure is an attractive secure income asset with predictable cash flows, significant inflation linkage and good duration that complements Alpha's other secure income platforms in commercial ground rents, social infrastructure and real asset-backed debt."

Boris Mikhailov, Head of Client Solutions at Alpha Real Capital, added: "With more pension schemes looking to become carbon-neutral, investment in renewable energy infrastructure has significant ESG benefits and can help schemes on their journey to becoming carbon-neutral. Alpha's renewables investments currently offset over 75,000 tonnes of CO2 per annum."



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