Pension capital in renewable energy: From zero to DKK 46bn in 5 years
Five years ago, Copenhagen Infrastructure Partners (CIP) was founded in close cooperation with PensionDanmark.
During the first five years, CIP has established its position as one of the largest fund managers within energy infrastructure both in Europe and globally. Today CIP has four funds under management with a total commitment of DKK 46bn (EUR 6.2bn).
PensionDanmark is co-founder and sole investor in the two first funds, and has committed DKK 18bn (EUR 2.4bn) to the funds in total making PensionDanmark the largest anchor-investor in all funds.
“We have had a very satisfactory collaboration with Copenhagen Infrastructure Partners and are very pleased with the team’s ability to source investments and to attract like-minded investors to the new funds. Since 2009, PensionDanmark has gradually increased our investments in renewables and energy infrastructure, as this type of investments contribute to secure the members good and stable returns many years ahead,” says Torben Möger Pedersen, CEO, PensionDanmark.
The funds are so far involved in 13 infrastructure energy projects in Northwestern Europe and North America with investments in offshore wind, onshore wind, biomass power, solar energy and transmission grids with a capacity of more than 3,000 MW. The total investments in the projects are more than DKK 70bn (EUR 9.4bn).
“The investments in renewable energy are not only providing good returns to the members, but are at the same time contributing to realize the goals in the 2015 Paris Agreement. The investments are highlighting Denmark as one of the leading nations within environment-friendly and sustainable energy supply. At the same time, the Danish export of energy technology and the Danish employment are benefitting from the investments.
The investments has sparked a global paradigm shift towards sustainability.
“Five years ago, when we co-founded CIP, it was perceived as a high-risk initiative by many colleagues in pension industry. This has changed radically during the last five years, CIP has been operating. Today 29 like-minded investors have joined the “club”, so CIP is now one of the leading global investors in renewable energy infrastructure,” says Torben Möger Pedersen.
CIP’s first funds, CI I, and CI Artemis, were founded in 2012 and 2014 with PensionDanmark as the sole investor. In CIP’s third fund, CI II, founded in 2015, PensionDanmark is one among 19 investors. In CIP’s fourth fund, CI III, founded in 2017, PensionDanmark is one among 29 investors. PensionDanmark has committed DKK 4bn (EUR 0,5bn) to both CI II and CI III.