TfL Pension Fund acquires wind farm
The Transport for London (TfL) Pension Fund has purchased an onshore wind farm for an undisclosed sum from DIF Capital Partners.
The £14.1bn pension scheme is to take ownership of the Wadlow wind farm project, located close to Cambridge.
DIF acquired the wind farm in 2016, four years after construction was completed. The facility generates up to 26 megawatts.
The closing of the transaction is subject to customary conditions and related approvals, DIF said in a press release. The deal is expected to complete in the second quarter of this year.
Andrew Freeman, partner and head of exits at DIF Capital Partners, said: “The success of this investment since 2016 demonstrates how financing the energy transition can deliver strong returns for our investors as well as drive the transition to net zero. DIF will be continuing to look for investment opportunities in the UK renewables sector in the coming years.”
The TfL Pension Fund’s latest sustainable investment report, published in December, showed that the scheme was head of its carbon emissions reduction target. It aims to reduce portfolio emissions by 55% by 2030, compared to 2016 data.
The trustees are focusing particularly on assets such as renewable energy projects and low carbon technology and infrastructure, according to the report.
As of 31 March 2023, the TfL Pension Fund had a 0.8% investment in a UK renewables fund managed by BlackRock, as well as 10.2% invested in infrastructure with several different asset managers. The BlackRock renewables fund was the scheme’s top performing investment over the 12 months to the end of March 2023, gaining more than 35% according to the scheme’s annual report.