UK pension funds and insurers are showing a strong preference for diversification across renewable energy technologies, according to a survey.
The survey commissioned by AlphaReal, a manager of secure income real assets, has revealed that 85% of respondents seek exposure to multiple renewable energy technologies, with only 15% preferring to invest in a single type.
Among those surveyed, nearly nine in ten plan to increase investments in onshore wind over the next five years. Currently, onshore wind emerged as the most popular choice, with 67% of respondents already allocating funds to it. Specifically, 30% said they expect to make significant increases, 57% anticipate slight increases, 12% will maintain current levels, and just 1% foresee slight decreases.
Deployment speed is key obstacle to investing in renewables, survey finds
Battery energy storage systems (Bess) are also set for substantial growth. Presently, 63% of the surveyed pension funds and insurers invest in Bess. More than half plan significant increases in the next five years, while a quarter will make slight increases.
Ground-mount solar investments are equally notable, with 54% of respondents currently invested. Looking ahead, 56% said they intend to significantly boost their allocations, 15% said they will increase slightly, and 14% will maintain their existing investments.
Ed Palmer, CEO and head of sustainability at AlphaReal, commented: “It makes sense that investors choose to diversify across different renewable energy technologies to get the most out of the range of opportunities available.”
According to the findings, this trend towards diversified renewable energy investments reflects a broader strategy to maximise opportunities and align with ESG goals, ensuring a robust and sustainable approach to energy transition.
