Pension Funds Insider

Pension Funds Insider brings the latest pensions news and industry insights; from investment and governance updates to new mandate appointments and pensions regulatory information.

Manchester pension fund invests £10m in renewable energy

13 August 2015

Image for Manchester pension fund invests £10m in renewable energy

Greater Manchester Pension Fund (GMPF) has committed GBP 10bn to community-scale renewable energy projects.

GMPF joins the UK Green Investment Bank (GIB) and Strathclyde Pension Fund (SPF) in providing funds to energy projects provided through Albion Community Power plc.

The two companies committed a combined GBP 60m to ACP earlier this year.

ACP builds, controls and operates community-scale renewable projects across the UK and is one of the largest single sources of equity funding available for projects in the sector.

GMPF's investment makes up a quarter of the further capital ACP aims to raise from additional co-investors as it builds a GBP 100m pot for small-scale funding projects.

Kieran Quinn, chair of GMPF said: "We are excited to be joining GIB and Strathclyde Pension Fund as investors in ACP and we look forward to supporting the continued expansion of community-scale renewable energy schemes across the UK."

The addition of the fund was welcomed by existing investors.

Shaun Kingsbury, chief executive of the UK Green Investment Bank said it acted as a reminder of the important role community-scale renewable projects will play in securing clean, green, and affordable sources of energy for future generations.

He said: "The fact that yet another of the UK's largest institutional investors has given its backing to ACP is testament to the efficiency and reliability of such schemes.'

Chair of Strathclyde pension fund Paul Rooney said while its first priority was securing members financial futures, supporting jobs and innovation in communities was also important.

He said: "There is a strong a growing appetite among forward thinking pension funds to diversify their portfolios into this exciting sector and Manchester is one of those funds."

Around the time the announcement was made, ACP also revealed details of its latest GBP 3.3m scheme to generate renewable energy, expected to complete in February 2016.

First published 13.08.2015