The Greater Manchester Pension Fund announced Monday that it intends to invest £10 million into community-scale renewable energy projects.
The pension fund responsible for numerous employers in and out of local authorities in the Greater Manchester area of the UK, Greater Manchester Pension Fund (GMPF) announced on Monday that it intends to invest a total of £10 million into community-scale renewable energy projects being developed by Albion Community Power (ACP) — which builds, controls, and operates community-scale renewable energy projects across the United Kingdom.
GMPF joins the UK Green Investment Bank and (GIB) and Strathclyde Pension Fund (SPF) in supporting the development done by ACP, one of the largest single sources of equity funding for community-scale renewable energy projects in the country.
“We are delighted to welcome the Greater Manchester Pension Fund as a new investor in ACP,” said Volker Beckers, Chair of Albion Community Power. “It is a clear reflection of the growing institutional demand for access to high-quality community-scale renewable energy projects as they have a proven track record of generating strong and stable returns for investors.”
The UK GIB and SPF invested £50 million and £10 million respectively into ACP earlier this year, while GMPF’s investment announced Monday represents around a quarter of the further capital ACP is hoping to raise as it builds a £100 million pool to fund small-scale projects.
“We are excited to be joining GIB and Strathclyde Pension Fund as investors in ACP and we look forward to supporting the continued expansion of community-scale renewable energy schemes across the UK,” said Councillor Kieran Quinn, Chair of Greater Manchester Pension Fund. “ACP will play a key role in this regard as the pressure to diversify beyond carbon-based energy sources becomes even greater.”
ACP celebrated GMPF’s announcement by revealing the details of a 499 kW hydropower scheme as its latest project, set to be located on the River Arkaig in Lochaber, Scotland. The project, worth £3.3 million, is set to generate approximately 3.3 GWh of renewable electricity annually, which is the equivalent of the power needed to supply around 550 homes.