Clean Energy Sector in the UK receives £330 million investment from Smart Pension
In a significant move towards a sustainable future, Smart Pension has invested £330 million in renewable energy through two funds managed by Octopus Energy Generation. This investment is expected to generate growth, provide more well-paid green sector jobs, and align with Smart Pension's ethical standards, helping members feel a connection to their pension savings.
The partnership between Smart Pension, Octopus Energy Generation, and Kensa aims to invest in British infrastructure for long-term environmental and social impact. The funds will be channelled into two flagship Octopus Energy Generation funds—Sky and Octopus Energy Transition Fund—known for their high sustainability standards and a sizeable portfolio of wind, solar, and battery projects.
One of the key projects supported by this investment is the UK’s first investor-funded ground source heat pump network in South Wales. Delivered by Kensa, this network will bring renewable heating and hot water to 114 new homes at Parc Eirin, built without gas. This investment demonstrates the transformative role of private funding in the transition to low-carbon heat.
James Lawrence, director of investment proposition at Smart Pension, emphasizes the commitment to sustainable returns and environmental impact. Zoisa North-Bond, CEO at Octopus Energy Generation, highlights the partnership's role in building a smarter, carbon-free energy system. Tamsin Lishman, CEO at Kensa, expresses pride in their role in delivering better, affordable heating and hot water powered by ground source heat pumps.
This latest investment forms part of Smart Pension’s broader strategy to allocate 15% of its default fund to private markets. The investments will support renewable surplus power generation and local leisure facilities, contributing to the transition to clean tech like heat pumps.
The investments made by Smart and Octopus Energy Generation are encouraging for the UK's renewables sector and its Net Zero goals. The UK Chancellor of the Exchequer welcomed the investment as a government policy success that unlocks private-sector funding for clean tech, highlighting its potential to deliver economic benefits alongside environmental impact.
In summary, Smart Pension's strategic capital allocation to Octopus Energy Generation facilitates critical infrastructure development, encourages green sector job creation, promotes sustainable private investment, and materially supports the UK’s broader transition to a net-zero energy system.
[1] Smart Pension's official press release [2] Octopus Energy Generation's official press release [3] Kensa's official press release
- Smart Pension, in collaboration with Octopus Energy Generation and Kensa, plans to invest in British infrastructure, intending to make an impact on the environment and society.
- The partnership between these three entities will funnel funds into the Solar and Octopus Energy Transition Fund, known for their commitment to environmental sustainability and renewable energy projects.
- This investment also includes funds for supporting renewable surplus power generation, contributing to the development of clean technology like heat pumps, and creating jobs in the green sector.
