Capital Dynamics has secured funding for its first onshore wind investments in Scotland with a combined capacity of 193MW.
The £48.5m of finance to Capital Dynamics’ Clean Energy UK Fund comes from Border to Coast Pensions Partnership, the largest Local Government Pension Scheme (LGPS) pool.
This marks the first commitment within Border to Coast’s innovative UK Opportunities portfolio on behalf of its Partner Funds.
Border to Coast chief investment officer Joe McDonnell said: “From the outset we said our UK Opportunities proposition would focus on adding value through financing the build of new infrastructure and our first commitment on behalf of Partner Funds delivers just that.
“Capital Dynamics offers not only a strong investment opportunity, but also the ability to have a tangible impact on the future pipeline of renewable energy infrastructure that the UK sorely needs if it is to reduce its reliance on oil and gas and meet net zero goals.”
Co-head of Capital Dynamics Clean Energy Barney Coles added: “We are delighted that Border to Coast, through its UK Opportunities strategy, has joined our global institutional clients in committing to our Clean Energy UK Fund.
“By doing so, Border to Coast continues its leadership in supporting the UK’s transition to a net zero energy system, while also benefitting from our unique approach to delivering attractive risk- adjusted returns and positive local impact.”
Capital Dynamics’ Clean Energy UK Fund invests in renewable energy projects, primarily in onshore wind and solar.
For each project, the Clean Energy Team secures long-term, fixed-price power purchase agreements (PPAs), offering stable returns with strong downside protection, the developer said.