Copenhagen Infrastructure Partners (CIP) is to take a significant minority equity stake in onshore wind developer Bute Energy and the grid developer Green GEN Cymru.
The investment will unlock Bute Energy’s £3bn portfolio of onshore wind farms across Wales, the developer said.
This represents an industry-leading investment which could see the company become the UK’s largest independent generator of renewable energy by 2030.
Green GEN Cymru is developing an network to distribute clean energy to homes and businesses across Wales.
Both Cardiff-based companies say their projects are a direct response to the Welsh Government’s target for 100% of the nation’s annual electricity consumption to come from renewable sources by 2035.
Bute Energy’s projects aim to meet 25% of this target while also contributing up to 18% of the new UK Government’s target of doubling onshore wind by 2030.
The Welsh Government also has a target of at least 1.5GW of renewable energy capacity to be locally-owned by 2035, keeping its benefits in Wales.
Today’s deal follows a landmark year for the two companies.
Green GEN Cymru secured its Independent Distribution Network Operator (IDNO) license from Ofgem in July.
Bute Energy’s Twyn Hywel Energy Park in Caerphilly was granted consent by the Welsh Government in November.
Nischal Agarwal, partner at Copenhagen Infrastructure Partners, said: “CIP’s investment in Bute Energy and Green Gen Cymru reflects our confidence in the Welsh renewable sector to deliver much needed infrastructure to Welsh homes and businesses, to play a full role in meeting national renewable energy targets, and to realise the economic, employment, and community benefits of transitioning our energy systems to a more secure and sustainable footing.
“CIP has a long track record of successfully constructing renewable projects in the UK.
“CIP’s UK development pipeline, which now stands at over 25GW, covers offshore wind, onshore wind, solar, BESS and network infrastructure.
“With a pipeline of this scale, CIP looks forward to making a substantial contribution to the UK’s 2030 objective for energy infrastructure investment.”
Managing director of Bute Energy Stuart George added: “We’re incredibly proud of our partnership with Copenhagen Infrastructure Partners and the opportunities this investment will provide to businesses and communities across Wales.
“We’re at the forefront of Wales’ mission to power the nation with clean energy, creating jobs, boosting the Welsh supply chain and providing transformational opportunities for local people.
“This investment is a vote of confidence by one of the biggest global investors in renewable energy in Wales and in Bute Energy’s plans to deliver the single largest investment in onshore wind in Wales.
“2025 promises to be another busy year for Bute Energy. With 10 energy parks in the planning system, the company aims to have six of those projects on the Cabinet Secretary’s desk for decision by this summer of 2025.
“These projects would provide another 1GW of new energy capacity – enough to power 1m homes.”
Daryn Lucas, managing director of Green GEN Cymru, said: “Enhancing Wales’ grid infrastructure is critical for this investment and for unlocking Wales’ energy potential.
“Green GEN Cymru is helping Wales to confront the climate emergency and generate growth. The capacity our projects will add to the grid will enable new community and renewable energy projects, help electrify our heating and transport systems, and support new businesses.
“It will also play a pivotal role in developing a robust and reliable distribution network for the whole country, empowering rural communities and ensuring Wales is ready for a future where we all use more electricity.
“With over 200km of new grid infrastructure currently in different stages of the consenting process, Green GEN Cymru are acting now to deliver for both UK and Welsh Government Net Zero targets.
“This significant investment is good news for Green GEN Cymru and good news for Wales.”