Insurers and pension funds want to increase investment in renewables, says AlphaReal

Most pension funds and insurers who have invested in the renewable energy sector expect to increase allocations over the next five years, according to research by AlphaReal, which has acquired a 33MW ground-mounted solar farm near Darlington, which is currently under construction. In November 2023 the real estate investment manager surveyed 100 senior UK pension fund and insurer investment professionals in the UK, who collectively manage £359 billion of assets.

Ed Palmer, CIO and Head of Sustainability at AlphaReal said the acquisition “ helps to meet increasing investor demand in the renewable energy sector, a trend that we expect to continue. AlphaReal has been investing in the sector for over 10 years, and we plan to continue deploying capital into attractive renewable energy projects, providing our clients with an opportunity to increase their exposure to this market.”

Raza Ali, Investment Director Renewable Infrastructure at AlphaReal said: “This acquisition aligns with AlphaReal’s increasing focus to invest in greenfield assets that are either under construction or have planning permission and grid connection in place. This approach can decrease development risk for investors whilst providing additionality which is what we need in the UK to meet Net Zero targets.”

AlphaReal’s renewable infrastructure offering primarily invests in onshore wind and ground mounted solar assets.

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