UK pension funds and insurance companies are planning a major push into renewable energy, with 95% planning to increase their investment over the next five years, according to research.
The research, commissioned by AlphaReal, showed that 35% of respondents, who manage assets totaling more than £350bn (€409bn), plan to increase their investment in renewable energy by up to 10%. It was done. 44% of respondents said they would increase their allocation by 10% to 20%, and 16% said they would increase it by more than 20%.
Only 5% of respondents intended to maintain or reduce their allocations.
Respondents expect more investment opportunities, reflecting the surge in demand for renewable energy. A third expect a significant increase, while 63% expect a small increase and only 4% think opportunities will remain stagnant.
Looking at current levels of prices and valuations for renewable assets in the UK, respondents believe they are attractive. More than two-fifths (42%) think valuations are “very attractive,” 49% of respondents think valuations are “fairly attractive,” and 9% say valuations are “reasonable.” is the answer.
Ed Palmer, CIO and Head of Sustainability at AlphaReal, said: “Renewable energy is a critical component of any sustainable investment strategy, aligning with ESG goals and playing a key role in the green transition while providing long-term “It offers significant earning potential.”
“Expanding investment opportunities in this sector will ensure that pension funds and insurance companies can invest in renewable energy now and in the future.”
“It’s no surprise that investors are looking at a wider range of investment opportunities,” said Boris Mikhailov, head of client solutions at Alphareal.
“Battery storage, for example, is gaining traction in the UK. When combined with proven and established technologies such as onshore wind and solar PV, it can lead to strong revenue enhancement and portfolio diversification. It’s from.”
Click here to read the latest IPE Real Assets magazine.
