CLEAN ENERGY
INFRASTRUCTURE INVESTMENTS

The ability to mitigate climate change will depend on a systematic departure from fossil fuels over coming years. Given the importance of the energy sector, a major driver of CO2 emissions and thus global warming, for all aspects of society and development, this will involve a comprehensive redesign of the way we generate, store, distribute and use energy.

We believe a holistic and flexible approach is needed to address the investment opportunity the energy transition offers and our team unites the experience required to navigate this dynamic market. We provide institutional clients with access to ESG-compatible investments in clean energy infrastructure which are characterised by stable returns, low correlation with traditional asset classes and measurable environmental impact.

€1.2bn investor
commitments
€900m capital
deployed
100+ transactions
completed
20+ countries
covered

our holistic approach

Decarbonise energy production

In order to limit global warming and ensure a safe and sustainable energy supply, unprecedented amounts of investment in renewable energy production are required. Spurred by innovation, increased competition and policy support in a growing number of countries, renewable energy technologies have achieved substantial technological advances and sharp cost reductions in recent years. Consequently, their deployment speed has come to outpace that of any other energy source.

The decarbonisation of energy production is a powerful long-term investment trend, with onshore wind and utility-scale solar PV representing two of the main growth drivers for generation capacity deployment. In addition, due to the coming-of-age of onshore wind generation, repowering projects using new turbines on existing, developed sites will also be required.

Having gone through a significant learning curve, the availability of reliable technologies at an industrial scale and at ever-decreasing costs resolves the historical contradiction between economic logic and ecological benefits. The fact that the levelised cost of energy of renewables plants has become comparable to or lower than that of fossil fuel power plants in many markets leads to a self-reinforcing dynamic that is driving the continuing displacement of fossil-fuel-based power generation by renewable energy systems.

Increase energy efficiency

Energy effi­ciency will be the single most important contributor to energy sector decarbon­isation on the demand side. It will account for almost half of the carbon emission reductions re­quired to fulfil climate targets, while benefitting from negative abatement costs: investments in energy efficiency not only reduce carbon emissions, but lower costs for the end user.

Efficiency measures typically reduce energy consumption by existing infra­structure and cover a variety of proven technologies. Applications range from LED streetlighting to building retro­fits, involving the installation of modern heating, ventilation and air conditioning (HVAC) or onsite-generation systems.

Despite the required technologies being readily available, private and public infrastructure owners often lack the financial means to implement energy efficiency measures. Our off-balance-sheet financing solutions solve this problem as the fund takes the required investments on his own balance sheet and in return receives a share of the achieved energy savings.

Our projects typically facilitate energy-saving retrofits for asset owners, funded by institutional investors and implemented through a technology partner. This partnership creates a “triple-win” situation. Investors participate in the energy cost savings created over several years and benefit from attractive and stable annual returns. Infrastructure owners realise energy, emissions and financial savings without the need to commit their own capital. Technology partners benefit from additional orders that would not have been possible otherwise.

Enable clean energy utilisation

With increasing renewable energy penetration, power systems will see strong growth in balancing needs, such as the requirement for flexible generation and the demand to offset short-term and seasonal swings in renewable energy production. The antidote to short-term intermittency is energy storage. Additionally, the trend towards decentralised energy supply and the increasing electrification of fossil fuel-reliant sectors, such as transport, create new infrastructure needs.

Of late, the three pillars of the energy transition – generation, storage and efficiency – have increasingly been converging, with technologies being combined to provide integrated energy solutions and contracted directly with the end user. One of the fastest-grow­ing segments is solar PV coupled with be­hind-the-meter storage on customers’ premises. Falling battery prices support the trend towards energy storage.

These developments are not only trans­forming traditional power and energy infrastructure systems but are reshap­ing customer expectations, thereby creating a need for new business models.