UK pension funds expect to increase renewables allocation

On the 10/22/20 at 7:51AM


Tuba Raqshan

Over the next five years, 68% of UK pension funds expect increased allocations into renewable energy, according to latest research from Alpha Real Capital, a specialist real assets investment manager.

In the UK, 74% of pension funds surveyed already invest in the renewable energy sector, while only 30% describe it as mature. More than half – 52% - think that this sector is developing, while only 18% think that it is still in the early stage.

The ability to invest into strategic infrastructure is the key driving factor, followed by attractive risk adjusted returns, asset diversification and ability to deliver stable income returns, according to the report.

Will Morgan, head of renewables at Alpha Real Capital, said that this 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.

“Renewable  energy  infrastructure  is  an  attractive  secure  income asset with predictable cash flows, significant inflation linkage and good duration, said Phillip Rose, CEO at Alpha Real Capital, adding that its renewables portfolio invests more than £550m into a portfolio of over 225MW in energy infrastructure, including wind, solar, hydro and other low carbon energy resources.

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