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Renewables fund targeting green power in US, Japan and Taiwan

Macquarie, the world’s largest infrastructure investor, has raised $1.93 billion for its second global renewables fund, targeting wind and solar projects in the United States, Japan, Taiwan and Australia.

The fund manager, Macquarie Infrastructure and Real Assets (MIRA), said it had drawn investment from 32 institutions, including pension schemes, insurers and sovereign wealth funds, helping it to exceed a minimum target of 1 billion euros.

While Europe-based investors contributed most of the capital – German and British investors accounting for 30% each – the fund, Macquarie Green Investment Group Renewable Energy Fund 2, also attracted interest from the Asia-Pacific and North America.

It will also invest in wind and solar projects in Western Europe, Canada, Mexico and New Zealand.

Green energy is seen as one of the biggest investment growth sectors, with $70bn sunk into projects, according to Bloomberg data from early 2020. Already, 34% of American energy is generated from renewables. That’s expected to rise after US President Joe Biden pledged to make environmental protection one of his administration’s key policy planks.

“In the geographies this particular fund is focused on, there’s over 300 gigawatts of additional capacity required in the next five years,” said Leigh Harrison, Head of MIRA for Europe, the Middle East and Africa.

While the push by countries to meet the terms of the Paris climate accord was a big driver of demand, many were also looking to renewables projects to help recover from the economic ravages of the Covid-19 pandemic.

The decision to launch a second renewables infrastructure fund comes three years after Macquarie took over the running of its predecessor through the £2.3 billion acquisition of the Green Investment Bank from the British government.

  • Reporting by Reuters

The Global Green Energy Transport and Technology Leaders Index created by Asia Times Financial in collaboration with ALLINDEX, is a benchmark that tracks shares of leaders in electric vehicle and renewable energy production and storage businesses.

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Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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