Pension funds invest in renewables on a large scale
Danish investment company Copenhagen Infrastructure Partners has launched a fund to become the world's largest in the field of green energy. The fund will be able to support alternative projects in this area up to 14 billion euros worldwide, the CIP said itself.
According to the Danish group, the fund will amount to 5.5 billion euros. "Due to the strong interest of institutional investors, the fund plans to achieve investment commitments of €5-7 billion and invest €10-14 billion in renewable energy infrastructure in North America, Western Europe, Asia and Australia," the fund said.
According to the CIP Managing Partner Jacob Paulsen, the market situation is now favorable for investment from scratch in the renewable energy infrastructure.
Among the leading investors are two Danish pension funds, PensionDanmark and AP Pension, the Norwegian pension fund KLP, and number of other pension and insurance companies. Major investors from Europe, Israel, Asia, North America and Australia are joining the fund.
The Fund intends to focus on investments in offshore and onshore wind energy, solar panels, waste transmission, storage and processing technologies, and biofuels in Western Europe, North America and Asia-Pacific countries. At the same time, the fund's investments will allow to reduce carbon dioxide emissions by 10-11 million tons annually and provide 5-6 million households worldwide with electricity.
CIP was founded in 2012 by the Danish pension fund and has invested in more than 20 energy projects with a total capacity of about 8 GW in the United States, United Kingdom, Germany, Spain and Taiwan. Final investment decisions on another 15 projects are due to be made and implementation starts in the nearest future.