The Durham County Council Pension Fund has pledged £30 million towards enhancing renewable energy through its contribution to a local pension pool.
This strategic move aims to bolster OnPath Energy’s endeavours in wind and solar power projects, propelling decarbonisation efforts in the UK.
Significant Investment in Climate Opportunities
Durham County Council Pension Fund has made a significant contribution of £30 million to a local pension pool that is set to provide advantages for Northeast onshore wind developer, OnPath Energy. This investment is a part of the Series 2 ‘Climate Opportunities proposition’, which is focused on making impactful strides in decarbonisation and achieving net zero targets.
Partnership and Goals
The partnership is managed by Leeds-based Border to Coast Pensions Partnership, which is the UK’s local government pension scheme pool. The £30m commitment supports OnPath’s projects in renewable energy, underlining a broader strategy aimed at sustainable development.
Through the first two series, Durham has allocated £100m, signalling a strong commitment to climate-friendly initiatives. This significant funding is flowing into the Brookfield Green Transition Fund II, which is controlled by OnPath’s parent company, Brookfield Corporation, following its acquisition of OnPath in a £500m agreement last year.
OnPath Energy’s Renewable Projects
OnPath Energy, previously known as Banks Renewables, is at the forefront of renewable energy projects. With a new head office at Chase House, Rainton Bridge Business Park in Durham, and an additional office in Hamilton, Scotland, the company is well-positioned geographically.
The company is leading approximately 30 projects focused on wind, solar, and energy storage across northern England and Scotland. These include Heysham Wind Farm in Lancaster, Hazlehead in Huddersfield, and Penny Hill Wind Farm near Sheffield.
Coun David Sutton-Lloyd, chair of Durham Pension Fund Committee, highlighted their dedication to transitioning towards renewable power, emphasizing the essential role of capital investment.
Impact and Future Prospects
In the past year until September 2023, OnPath’s wind farm operations produced 528,000 MWh of energy, catering to the needs of approximately 195,000 homes, as stated by the company. This output is comparable to providing power for a city larger than Newcastle.
Such efforts are foundational to achieving both immediate and long-term renewable energy objectives. The strategic involvement of funds into renewable projects ensures sustained development for regional and national energy goals.
Broader Context and Ownership
The Border to Coast Pensions Partnership, comprising 11 local government pension schemes, manages investments for various involved entities, including cumulated assets of around £64 billion. Out of which, £52.3 billion is actively managed or overseen by the partnership.
This extensive partnership includes counties such as Bedfordshire, Cumbria, East Riding, and more, stressing the collaborative effort behind these substantial investment moves.
Local Economic Benefits
Substantial investments like these have broader implications on local economies, potentially stimulating job creation and fostering new growth opportunities.
By supporting a green transition, investments not only yield environmental benefits but also drive economic resilience and diversification in the region.
A Vision for a Sustainable Future
Durham Pension Fund’s active role in climate-focused investments demonstrates a vision aligned with sustainable practices. This involvement facilitates progressive development in renewable energy sectors.
Investment decisions reflect a conscientious approach to economic and environmental sustainability, designed to secure long-term returns and contribute to a just transition towards renewable energy frameworks.
The investment underscores a dedicated approach to renewable energy, reinforcing sustainability goals.
Durham’s strategic contributions continue to empower significant advancements in the UK’s energy landscape.
