Quinbrook Infrastructure Partners, an investor in clean energy infrastructure, is pleased to announce the successful final close of its Quinbrook Renewables Impact Fund II (QRIF II), raising £587 million (about USD 784 million) in investor commitments. The fundraising surpassed the original fund target of £500 million, reflecting the continued investor interest in renewable energy infrastructure and the long-term potential with the energy transition in the United Kingdom and Ireland. The latest milestone is indicative of good momentum in the clean energy, renewable energy infrastructure, energy transition, decarbonization, and battery energy storage industries, all of which are attracting institutional capital.

The funding is the result of a successful campaign, when governments and investors are stepping up their investments in sustainable infrastructure to meet ambitious climate goals. Quinbrook said the engines of QRIF II will provide financing for renewable energy generation, energy storage, and energy infrastructure that will enhance energy security and advance the modernization of electricity networks. The fund is aligned with the UK's Clean Power 2030 strategy and Ireland's target to have 80% of its electricity from renewables by 2030, highlighting the need to invest in the long-term for clean energy, renewable energy infrastructure, energy transition, decarbonization, and battery energy storage.

Strong Investor Confidence in Renewable Infrastructure

The high level of over-subscription for this fund will reflect growing institutional demand for infrastructure assets that can deliver long-term, steady returns and support climate targets. As the global landscape changes, investors are looking for projects with stable cash flows, contracts and with inflation protected returns and renewable infrastructure is a good asset class.

Quinbrook noted that the investment approach and the emphasis on high-quality contracted assets have garnered a lot of interest from investors in QRIF II. The fund is focused on projects that generate financial returns, while also addressing key priorities to lower carbon emissions, enhance electricity networks, and boost energy resilience in the UK and Ireland.

Mark Burrows, Managing Director and Head of Relationships and Fundraising, Europe, commented on the successful close: "The heavy participation of investors and the pace at which the fundraising objective was met demonstrate an increasing appetite for investments in well structured clean energy infrastructure.

As governments expand their support for the energy transition, institutional investors are still seeing the long-term value of contracted renewable energy assets," he said.

Working with the UK's ambition for a ‘Clean Power 2030 Vision'

Quinbrook said QRIF II is a dedicated fund to invest in infrastructure for the UK's journey towards a low-carbon electricity grid. The fund targets renewable energy generation, battery storage and other grid support technologies that will enhance the reliability of electricity and reduce reliance on fossil fuels.

The investment approach fits in with the UK government's vision of Clean Power 2030, which seeks to boost the share of renewable energy in the electrical power supply mix and enhance energy security. The fund will support projects that contribute to greater grid flexibility and storage, and will help increase the proportion of renewable energy in the grid.

This approach is also part of Ireland's National 80% Renewable Electricity Generation Strategy that aims to hit 80 percent renewable power generation by 2025. As renewable energy penetrates the grid, it is thought that increasing the amount of renewables that can be stored, and a variety of renewables being installed at once, is necessary to keep the grid stable.

The major projects are already included in the portfolio.

Quinbrook said that QRIF II has already built up an impressive asset book of renewable infrastructure investments under long-term contracts with a stable, inflation-linked revenue stream.

It is investing in the 373MW Mallard Pass Solar Project in the East Midlands of England, one of its biggest projects. The project, if successful, will be one of the largest solar energy implementations in the country and will be a major contributor to ensuring a clean and green energy supply throughout the country.

Aegis Energy, a clean energy refueling platform for decarbonisation of commercial transport, is also in the portfolio. The increasing shift to low-emission vehicles by freight and logistics companies are likely to add even more significance to infrastructure, including alternative fuels and charging points.

Project Norton, a renewable energy project on Stockton-on-Tees, is another investment that has been announced recently. Project Norton will involve 65 megawatts of solar power and 41 megawatts of battery storage, making it a total investment of 106 megawatts. For hybrid projects, such as Project Norton, the combination of renewable energy generation and the flexibility these offer the electricity grid makes them more valuable.

Expanding Investment Strategy

Quinbrook said QRIF II is an evolution of its investment philosophy to look at areas where demand remains strong in the long term. The fund will go beyond renewable generation to invest in infrastructure to ensure grid stability, commercial transport decarbonization and advance energy storage technologies.

As electric systems evolve to include more renewable power, these sectors are growing in significance to achieve reliable power supplies. Battery storage in particular is anticipated to be an important technology to help stabilise renewable generation and enhance grid performance and reliability.

The company is of the view that infrastructure investment prospects remain favourable as supportive government policies and long-term climate commitments are in place both in the UK and Ireland over the next few years.

Building on the Success of QRIF I

QRIF II follows the success of the Quinbrook Renewables Impact Fund I (QRIF I) that closed in October 2023 with €620 million raised.

The positive investor feedback on the second fund is yet another reminder of investor confidence in Quinbrook's investment approach and capacity to recognize renewable infrastructure opportunities that can return investment profits and measurable environmental outcomes.

Speaking about the recent fundraising, Quinbrook Managing Director and UK Regional Lead Keith Gains commented: “The UK and Ireland are still making good progress towards their energy transition goals, which is continuing to create a steady demand for infrastructure that delivers resilience and decarbonisation benefits.

He said QRIF II was an extension of Quinbrook's investment philosophy to other areas where it can see long-term growth, such as grid stability infrastructure in Ireland and decarbonizing commercial transport throughout the United Kingdom. The company anticipates that these are important contributors to the area's future as a cleaner, safer and more resilient energy system.