‘World’s largest green energy fund’ sets sights on US$16bn investment pot

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Getty.

Copenhagen Infrastructure Partners (CIP) is now fundraising for what it says is the “world’s largest green energy fund”, a scheme meant to pour billions into renewables across developed economies.

On Tuesday, the Danish fund manager said it is gathering commitments for a vehicle – Copenhagen Infrastructure IV (CI IV) – targeting global plays in contracted offshore wind, onshore wind, solar PV, transmission infrastructure, storage, waste-to-energy and biomass.

As of 15 June 2020, the fourth fund of the CI series has already raised €1.5 billion (US$1.7 billion) from a pool of institutional investors, including pension plans from Denmark (PensionDanmark and AP Pension) and Norway (KLP).

Fundraising for CI IV will now continue towards a €5-7 billion goalpost (US$5.6-7.9 billion), with talks ongoing with potential contributors in Europe, America, Asia, Australia and Israel. Together with CIP’s own commitments, the fund's final pot could reach €10-14 billion (US$11-15.8 billion).

Approached by PV Tech, CIP had not spelled out by the time this article was published – how much of the €10-14 billion total might be earmarked for solar projects. In its prepared statement, the Danish group explained CI IV will generally focus on greenfield renewable developments.

The green energy fund will target what CIP described as “low risk” OECD states in Western Europe, North America, Australia and developed Asian countries. Together with earlier funds, CI IV will sponsor enough renewables to power 5-6 million homes worldwide, according to the firm.

‘Favourable’ timing to launch largest green energy fund

CIP’s pledge to devote €10-14 billion to the global energy transition emerges as the renewables industry contends with disruption from COVID-19.  

The sector, gearing up pre-pandemic for a strong 2020, has had to grapple instead with a reality of supply chain bottlenecks, construction freezes and financing setbacks. The current talk is of a short-term hit from the wider economic recession, followed by a rebound in late 2020 and beyond.

According to CIP managing partner Jakob Baruël Poulsen, the present timing is “favourable” for funds targeting greenfield renewables. He underscored the “significant visibility” of CI IV’s current investment pipeline, as well as its “high degree of execution certainty”.

Bo Normann Rasmussen, CEO of AP Pension, hailed the pension fund’s chance to contribute €335 million (US$379 million) towards CI IV. “We are proud to be part of the world’s largest renewable energy infrastructure fund,” he remarked.

The ramping up of private capital for renewables comes as bodies including the UN and the International Energy Agency (IEA) urge governments to follow suit, amid calls to support green energy even as the COVID-19 emergency squeezes public budgets.

In parallel, research has sought to make an economic case of renewables as a recovery pillar. Studies have documented the slump over the past decade of technology costs, particularly solar’s, and the potential of renewable portfolios to produce higher investment returns.

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.
11 October 2022
PV CellTech Extra will be held as a series of live webinars and on-demand sessions on 11-13 October 2022. We'll be taking a slightly further forward-looking view at the technologies and roadmaps for new cell architectures set to dominate mass production during 2023-2025 with special emphasis on the potential timelines for technologies beyond the single-junction cell design, including perovskite and hybrid concepts.

Read Next

PV Tech Premium
September 26, 2022
The way that solar companies use and consume intelligence needs to change, with more accurate and reliable data on project deployment needed, especially in light of the recently passed Inflation Reduction Act (IRA).
September 22, 2022
Wood Mackenzie has repeated warnings that module supply shortages are set to persist until the end of 2023.
September 20, 2022
From module makers and BOS producers to utility-scale developers and community solar companies, the Inflation Reduction Act (IRA) has taken centre stage at this year’s RE+ in Anaheim, California.
September 19, 2022
California Governor Gavin Newsom has signed a proposed community solar programme into law that will help low income communities benefit more from solar PV.
September 15, 2022
Declan Flanagan, former CEO of Orsted Onshore, has launched a renewables investment platform with an initial capital of US$100 million.
September 15, 2022
The European Parliament has backed plans to increase the European Union’s (EU) renewable targets as it grapples with the fallout of the war in Ukraine and the rampant energy crisis.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 27, 2022
15:30 AEST (UTC +10)
Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)