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Octopus Renewables secures £185m mandate from National Grid pension scheme


Fraisthorpe wind farm in Yorkshire | Credit: Octopus Renewables

Octopus Renewables to invest £185m in UK solar and onshore wind assets through partnership with National Grid’s pension scheme

The UK renewables sector has secured an early New Year boost, with Octopus Renewables chosen to oversee £185m of investment in domestic solar and onshore wind assets through National Grid’s corporate pension scheme, the two firms announced today.

Octopus Renewables, the specialist clean energy investor arm of Octopus Group, will manage the 25-year investment from the National Grid UK Pension Scheme (NGUKPS) in a long-term partnership it said would provide “an attractive solution for investors”.

The fund, named Renewable Energy Income Partnership III (REIP III), is the third institutional mandate Octopus Renewables has closed in renewable energy infrastructure in just over two years, all of which are managed by the firm. REIP III is bespoke for National Grid and will be managed exclusively for the firm, Octopus confirmed. 

Alex Brierley, co-head of Octopus Renewables, said he was “delighted” to embark on the long-term partnership with NGUKPS. “With predictable income, diversification and sustainable investment all at the forefront of institutional investors’ minds, this commitment by NGUKPS shows that our Renewable Energy Income Partnership series continues to provide an attractive solution for investors,” he said.

Octopus Renewables is the largest commercial-scale solar energy investor in Europe, boasting over £3.2bn of energy assets under management. Last month the firm launched a major IPO on the London Stock Exchange which raised £350m, smashing its initial target of £250m in one of the largest UK investment company raises of the year.

Deniz Sevincer, co-head of institutional funds at Octopus Renewables – the sister company to energy supplier Octopus Energy – said the firm’s “scale, experience and origination capability puts us in the unrivalled position to provide the flexibility needed to create a bespoke offering that matches the National Grid UK Pension Scheme’s objectives”.

NGUKPS also welcomed the partnership. “We are pleased to have onboarded Octopus and look forward to working together on this important asset class,” it said in a statement.

Research conducted by Octopus Renewables with pension funds, insurers and sovereign wealth funds last October found investors plan to divest 15.6 per cent of their portfolios from fossil fuels over the next 10 years.

Speaking to BusinessGreen sister title Professional PensionsOctopus Group co-founder Chris Hulatt said pension schemes’ interest in renewable energy has grown significantly in the last two years, increasing demand for specialised solutions.

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Source: – Business Green