The UK Green Investment Bank (GIB) has secured £463 million of investment for its offshore wind fund.
Investors for the first fund raised by the GIB group included UK pension funds and a sovereign wealth manager. The amount raised is almost half of its £1 billion target.
Shaun Kingsbury, Chief Executive of GIB said he expects offshore wind to provide enough green electricity to power more than eight million homes by 2020.
He added: “The fund will create significant benefits for the UK by mobilising capital into the UK offshore wind sector from new, long-term investors seeking good, risk adjusted returns. Attracting additional capital and creating a liquid market for operating assets is an important step in reducing the cost of offshore wind and supporting the continued growth of the sector.
“New investors will allow the original developers to sell down their stakes and use the proceeds to finance new renewable energy projects.”
The GIB has so far backed 46 UK projects, with a total value of almost £7 billion. Earlier this month it announced a £200 million pot for international investment.