Renewable energy investor Octopus Renewables has been selected as a partner by institutional investor Nest, which manages some £16 billion in UK pension savings, the company said last Friday.
The partnership has committed to a £250 million investment in renewable projects in the UK and Europe this year, with more ambitious targets planned for 2030, Octopus said in a blog.
“We see our partnership with Nest as a significant milestone in the journey to a brighter future,” Octopus said, pointing to the momentum for other major pension schemes to make similar moves.
As the technological challenges are resolved and costs plummet, wind and solar power infrastructure can be ideal for the long-term predictable income streams that institutional investors are looking for, Octopus said.
“For Nest, we’ll be covering a diverse range of assets, regions and technologies across all three stages of the renewable lifecycle. And we’ll also be looking for growth opportunities in the wider energy transition,” it added.
Institutional investors have been shifting to investments in renewables as the pressure on them to pivot towards sustainability has been growing. Nest announced last July a plan to achieve a net-zero portfolio by 2050, and to halve carbon emissions by 2030.
Octopus has invested more than £3 billion into solar and wind farms over the last decade, making it the UK’s largest independent owner of solar and onshore wind assets.