The renewable energy sector is an “increasingly” attractive investment for pension funds.
That’s according to Aurium Capital Markets, which found more than £100 million of investment from institutional pension funds were directed to green projects between 2014 and 2015.
That’s because the UK is working towards meeting its emissions reduction targets and finding a “responsible way” to fill the energy gap, the research states.
Steven Blase, Partner at Aurium Capital Markets said: “We believe green energy projects are very attractive for [pension funds]. Not only do they improve the ‘green’ impact of their portfolios, they can pay an attractive return and there is very little correlation with mainstream asset classes.
“We have already helped raise £200 million to help build and acquire a portfolio of major biomass and energy from waste plants in the UK and we are looking to raise further funds for more projects in this area.”