An AlphaReal survey has shown that there is intent among UK pension funds and insurers to diversify their energy investments, including by expanding into onshore wind.
More specifically, 85% of those surveyed expressed an interest in investing in a range of energy technologies. A strong majority also discussed their aim to invest in onshore wind to a greater extent between now and 2029.
The UK pension funds and insurers surveyed manage more than £350 billion in total. This survey is therefore notable for the wealth managed by the respondents as well as the actual results. Further, these findings coincide with a new Labour government coming to power which is targeting ambitious energy and climate goals.
Investments Set To Grow Substantially
To break down the survey further, nearly a third of respondents expressed an anticipation to substantially increase their onshore wind investments in the coming years.
Beyond that, more than half of those surveyed expressed the intent to make slight increases in their onshore wind allocations. This totals 87% aiming to increase investment levels to one degree or another. Only 12% intend to sustain their current investment levels and a mere 1% plan a slight reduction.
Other areas likely to see further investment (per the survey) are battery energy storage systems or BESS and ground-mounted solar.
56% of respondents plan to significantly increase their ground-mount solar allocations over the next five years. This figure rises slightly to 57% when respondents were asked the same question regarding BESS.
Looking To The Future
According to GOV.UK, 50.9% of the UK’s electricity generation was contributable to renewables in quarter one of this year.
Naturally, further investments will help expand renewable industries in the UK whether it be wind, solar or otherwise. All in all, the growth of renewables can help the UK reach its energy and climate targets, including Labour’s new daring goal of 100% clean energy by 2030.
Only time will tell how much the renewable economy will grow in the years and decades ahead, though data such as that from AlphaReal’s recent survey point toward significant growth.