UK-based Smart Pension, which has £6bn in assets under management, has committed an initial £330m to two renewable energy funds managed by Octopus Energy Generation.
The defined contribution pension scheme has allocated 5% of its default fund to the Octopus Renewables Infrastructure Fund and the Octopus Energy Transition Fund. Smart Pension said the move forms part of a broader 15% allocation commitment to private markets within its default fund.
According to the fund, the £330m commitment will help finance a range of green energy projects, including a ground source heat pump network in south Wales, delivered by Kensa. The project will provide affordable renewable heating and hot water to 114 new homes at Parc Eirin and aims to position ground source heat pump networks as an investable low-carbon utility.
James Lawrence, director of investment proposition at Smart Pension, said: “Partnering with Octopus and Kensa allows us to invest in British infrastructure to deliver measurable environmental and social impact for years to come.
“From renewable surplus power generation to support local leisure facilities, to cutting-edge clean tech like heat pumps, these are the kinds of investments that not only align with our own ethical standards, but also help members feel a deeper connection to their pension savings.”
