Direct Investments
Direct Investment
Directly investing in assets that aid the energy transition to a lower carbon economy.
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Through one of our fund managers, the Fund owns energy centres on NHS hospital sites with one of these being local at the Foresterhill Health Campus Hospital.
These energy centres are fully operational and supply heat and power meaning a reduction in Health Board energy costs and CO2 emissions.
Energy efficiency is from modern gas-fired Combined Heat and Power boilers. Heat is produced as a bi-product of electricity generation and distributed locally.
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The Fund has invested just under £1 million to install 3,000 photovoltaic solar panels on to the roof of a distribution warehouse owned by the Fund in Wolverhampton.
On completion the panels will be able to produce 979,200 kWh of electricity per annum, which is enough to boil a kettle 8,901,818 times or is the equivalent annual electricity use of 268 average UK households. The electricity generated will save 248 tonnes of CO2 emissions per annum, which is comparable to planting 1,550 trees.
The electricity generated is sold to the tenant, with any excess sold to the grid.
The installation of these solar PV panels at Wolverhampton is an example of a significant energy and carbon improvement within the property portfolio.
Grid Infrastructure Investment
The Fund has a stake in a synchronous compensator asset in Scotland.
This project is the Fund’s first investment into transmission assets, providing an opportunity to invest into the growing market of the UK’s grid stability services. The asset is being developed by TINZ, a joint venture between two leading energy transmission developers, Transmission Investment Holdings Limited (TI) and Net Zero Energy Development Limited (known as “PeakGen”). Earlier in the year, the JV submitted a bid into the “Stability Pathfinder 2 tender” and was awarded a 10-year inflation-linked revenue contract from UK National Grid Electricity Operator to construct and operate the grid stability asset in Scotland.
A synchronous compensator is a rotating machine that does not produce electricity. It helps manage the stability of the national grid including the relationship between voltage/current and the resilience of the system to sudden faults. With the move towards decarbonisation of electricity, to meet net zero targets, technologies such as these will help stabilise and strengthen the grid. This is particularly important as renewables, which can be intermittent, are integrated into the UK power system.
The project will receive inflation linked availability based contracted revenue until 2034 providing a stable yield once operational. Construction is scheduled to start in Q4 2022, with the site becoming operational in Q2 2024.
