UK's Shortfall in Renewable Energy Investment Discussed by Greg Scott, Phoenix Executive
In the face of significant grid connectivity and capacity constraints that hinder the speed of new renewable infrastructure deployment in the UK, Phoenix Group, a leading UK savings and retirement business, is playing a pivotal role as a major private financial backer.
The UK government, while offering policy incentives for renewables and grid upgrades, faces practical issues such as lengthy permitting processes and limited grid capacity, leading to delays that can stretch over a decade, affecting project delivery times.
Phoenix Group, one of the UK’s largest long-term savings providers, is actively participating by providing capital to infrastructure projects that align with sustainable growth. This is evident in its financial partnership with Encevo to accelerate clean energy development in Luxembourg and the Greater Region.
The group's broader sustainability commitment includes R&D investments in emerging renewable solutions such as micro wind technology and retrofit housing, indicating their proactive role in supporting innovation to overcome energy and environmental challenges.
Market-wide, the interplay of grid constraints and rising demand for renewable-powered digital infrastructure is pushing some development towards emerging markets offering better conditions, such as Spain, Portugal, and the Nordics.
However, Phoenix's role as a major private investor complements government goals by financing critical green infrastructure investments. While there is no direct mention of UK government funding channeled specifically through Phoenix Group, the company's investments bridge the gap created by the systemic grid challenges.
Phoenix Group has allocated £10bn to the illiquid credit space since 2020, with £1.2bn invested in infrastructure assets, of which £450m is in renewables. The company aims for 50% to 70% of asset originations in the portfolio to be in sustainable or transition assets, with 90% of renewable infrastructure investments being in the UK, its core market.
Despite a lack of investible projects in the pipeline in the past years, Phoenix is committed to investing at least 5% in unlisted equities by 2030. To support this commitment, Phoenix has set up a joint venture with Schroders, Future Growth Capital, which includes a UK infrastructure strategy.
Phoenix's investments extend to gas distribution networks, which will remain important for the flow of hydrogen or other low-carbon gases. The company is also invested in early-stage climate solutions in its equity investments, targeting core and core+ infrastructure.
Greg Scott, senior investment manager at Phoenix, will be speaking at the Renewable Infrastructure Summit on 26 February, shedding more light on the company's strategies and commitments.
In summary, the UK government supports renewable infrastructure growth in principle but faces systemic grid challenges that slow progress. Phoenix Group, on the other hand, plays a significant role as a major private financial backer in renewable infrastructure investments and sustainability R&D to help bridge this gap.
- Phoenix Group, a major private financial backer, is bridging the gap created by the UK's systemic grid challenges by investing heavily in renewable infrastructure, such as £450 million in the UK alone.
- Greg Scott, senior investment manager at Phoenix, will discuss the company's strategies and commitments towards renewable infrastructure and sustainability R&D at the Renewable Infrastructure Summit on 26 February.
- Phoenix Group has allocated a significant portion of its investments towards sustainable or transition assets, aiming for 50% to 70% of asset originations within its portfolio to be in these sectors.
- Phoenix Group is also investing in early-stage climate solutions, targeting core and core+ infrastructure, and is involved in gas distribution networks, which will remain important for the flow of hydrogen or other low-carbon gases.
