Energy infrastructure investment manager Quinbrook Infrastructure Partners has reached a Â£620 million final close of the UK-focused Quinbrook Renewables Impact Fund (QRIF), which is anchored by the UKâ€™s largest solar and battery storage project, Cleve Hill in Kent, which consists of 373MW of solar and 150MW of battery storage.
The fund substantially exceeded the QRIFâ€™s initial Â£500 million target.
â€œThe UKâ€™s ambition to deliver a 100 percent decarbonised power system represents an unprecedented GBP 375 billion new investment and asset creation opportunity, which will support robust UK climate risk resilience, accelerate industrial decarbonisation, deliver improved energy affordability, the security of domestic energy supplies and offer highly skilled â€˜green jobs,â€ a statement said.
Quinbrook said the fund, which was marketed exclusively to UK institutional investors, has a portfolio that includes a range of long-term inflation linked contracts with investment grade counterparties such as National Grid and the UK Government, including the Pathfinder programme, the Contract for Difference regime, and the Capacity Market, as well as inflation linked power purchase agreements with leading UK companies.
Quinbrook also said the portfolio features new infrastructure opportunities that leverage innovations in the energy sector that use advanced data science and artificial intelligence such as that deployed in battery storage optimisation.
More than 60 per cent of QRIFâ€™s modelled portfolio is either already built and operational or under construction. â€œOnce construction works are completed and the assets operational, more than 85 per cent of the modelled portfolioâ€™s cashflows are expected to be linked to UK rates of inflation,â€™ Quinbrook said. Major investments within QRIFâ€™s diverse portfolio include:
Mark Burrows, Quinbrookâ€™s head of Europe, capital formation and investor engagement said: â€œStrong macro tailwinds are supporting QRIFâ€™s investment strategy, with the confluence of societal will, political imperatives which are cross party in the UK and fundamental economics driving decarbonisation of power. Furthermore, investors have responded to the genuine and tangible impact delivered by QRIFâ€™s focus on the development, construction and long-term operation of new infrastructure projects.â€