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Sustainable

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investing at
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ENERGY
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LP demand for

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climate transition

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Private Infrastructure Focus

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Deep dives

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Key themes in June 2024
climate transition
secondaries

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 Contents
HOME

CONTENTS
01 02 03

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Campbell Lutyens

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Campbell Lutyens Market context GP landscape

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Market context

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GP landscape

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LP demand for

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energy transition
04 05 06

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Energy transition

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secondaries
LP demand for Energy transition

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Sector deep dives
energy transition Secondaries
Sector deep dives

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 HOME

CONTENTS

Campbell Lutyens
Campbell Lutyens

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Market context

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GP landscape

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LP demand for energy

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transition

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Energy transition

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secondaries

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Sector deep dives

Appendix

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 Campbell Lutyens has been advising leading GPs operating in private
HOME markets for over 35 years
Campbell Lutyens’ strategic objective: to be widely recognised as the best firm in our sector
CONTENTS
Aligned Independent

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12 offices 100% employee-owned $0 parent company revenues

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Campbell Lutyens
Lutyens   

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 240+ member team  1 global P&L  $0 external debt

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 Very stable senior team  Strong balance sheet

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Market context

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Fund Placement Global presence Secondary Advisory

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GP landscape
22 nationalities
35 year track record, 23 languages 22 year track record

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over $270bn raised Over 290 successful

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London
LP demand for Team has raised over 150 secondary portfolio
New york

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energy transition
240 private equity, Paris sales and advisory
82

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private credit Los Angeles Munich mandates
Hong Kong
and infrastructure Chicago 17

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Energy transition Singapore Team has advised on
funds

op
secondaries Charlotte over $130 billion of
Seoul
transaction value

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Tokyo
Melbourne
Sector deep dives
GP Solutions
Advising GPs on minority investments, strategic partnerships, GP
acquisitions and other Management Company related objectives

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 Energy transition and environment at Campbell Lutyens
HOME Overview

CONTENTS Our track record

and team
Advising $26bn of dedicated >10 year track record

C
on
Campbell Lutyens
Lutyens
sustainable investing funds in sustainable investing

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Raised capital across private equity, Specialist global team

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Market context

private credit and infrastructure across asset classes

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pr
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GP landscape

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LP demand for
Our goals

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energy transition
Committed to being the leading Increase the capital

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advisor in sustainable investing in we raise for dedicated
private markets sustainable investing funds

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Energy transition

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secondaries

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Raise the bar on how all of our Contribute to the development of
Sector deep dives clients approach sustainable private markets sustainable investing
investment and ESG through thought leadership

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 Energy transition and environment at Campbell Lutyens
HOME Our recent clients

Primary fundraises
CONTENTS
$26bn European
infrastructure manager
North American
infrastructure manager
Global
infrastructure debt
manager
European
infrastructure manager
European buyout and
credit manager
Global infrastructure
manager
Global infrastructure
manager
Advised or currently

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being advised for €800m target $1.5bn target $3bn target €500m target €500m target €500m target $1.7bn target

on
Campbell Lutyens
Lutyens Energy and environment Mid-market energy transition Infrastructure debt Infrastructure credit for Mid-market energy transition Global resilient cities Sustainable and critical
specialist energy infrastructure energy transition companies infrastructure infrastructure

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In market In market In market In market In market In market In market
transition strategies

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Market context Green Energy
Ambienta IV Climate Impact Fund Qualitas Energy V Global Renewables Fund Europe IV - €2.3bn 2021
Solutions Fund European sustainable
€500m

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€1.55bn €860m €2.4bn €650m $2.75bn infrastructure plus co-invest
Late-stage VC / Global renewable energy Global sustainability-driven
Resource efficiency growth stage dedicated Renewable energy Energy efficiency and clean Africa II - €706m 2021

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and pollution control climate fund infrastructure energy projects Emerging markets growth / buyouts
2022 2022 2022 2021 2021 sustainable infrastructure 2020

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GP landscape

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GPCA transactions Secondary transactions

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LP demand for European European infrastructure European infrastructure

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energy transition Acquisition by Acquisition of Sale of 20% GP stake to
institutional investor manager manager
Portfolio of LP interests Single asset continuation

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Single asset continuation LP-led liquidity offering Co-investment syndication
Preferred equity financing
$96bn AUM €57bn AUM $20bn AUM €100m €410m $450m $500m $45m
Sell-Side Energy Transition Green hydrogen Electronic waste
$200m Climate transition Renewable energy
Buy-Side Financial and Sole Sell-Side

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Financial Advisor Strategic Advisor Financial Advisor Funds asset recycling Emerging market renewables platform asset
Energy transition

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2024 2023 2023 2023 2022 2021 2021 2021 2020
secondaries

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Diversified infrastructure fundraises with a significant focus on energy transition
Sector deep dives European Global Global
infrastructure infrastructure infrastructure
manager manager manager Stonepeak Asia Manulife
Arcus European III Infrastructure Infrastructure II Infranode II Arcus European II

€7bn target $1.5bn target $25bn target €1.61bn $3.3bn $4.65bn €1.2bn €1.22bn
Mid-market European Mid-market Diversified global Mid-market European Diversified Asian Diversified North Diversified Nordics Mid-market European
infrastructure infrastructure infrastructure infrastructure infrastructure American infrastructure infrastructure infrastructure
In market In market In market 2022 2021 2020 2019 2018

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 HOME

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Campbell Lutyens

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Market context
Market context context

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GP landscape

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LP demand for energy

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transition

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Energy transition

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Sector deep dives

Appendix

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 Macroeconomic Overview
HOME

The energy transition is

accelerating at a rapid pace… Key themes impacting the pace of the energy transition
CONTENTS
• Russia-Ukraine war is driving increased re-shoring of energy as
countries strive for greater energy security
Energy
75% Of countries now have made or

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• The crisis is also driving greater innovation in energy efficiency,

on
Campbell Lutyens have proposed net zero targets Security
storage technology and alternative fuels, as countries seek to

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build more resilient energy systems

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Market context
context
• Concern over material availability (e.g. lithium, steel, copper) to

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Of the world’s largest publicly- facilitate clean energy technology
Supply Chain
50% traded companies are

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committed to net zero
Bottlenecks • Delays and wider shortage due to Ukraine crisis has also

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GP landscape
impacted construction processes

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LP demand for

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energy transition
Annual increase in • Energy volatility is putting further strain on project economics and

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Inflationary supply chains
20% low-carbon investments since
2013, reaching $1.8 trillion in Environment • Rising interest rates are increasing the cost of debt and therefore

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Energy transition 2022 decreasing overall equity returns on projects

op
secondaries

However…

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• Driven by their climate targets, governments continue to
Sector deep dives
Temperatures are still projected introduce policies that provide significant support to investment
Policy & in clean energy
to rise by 2.3ºC by 2050 in Regulation
the current trajectory scenario • Governments are also using public funding as a tool to stimulate
private investment

Sources: Net Zero Tracker; McKinsey

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 Energy Security
HOME

Energy security remains in focus in Europe, two years on from Russia’s invasion of Ukraine. REPower EU, launched in
May 2022, continues to facilitate the shift away from reliance on Russian gas

CONTENTS Wholesale electricity day-ahead electricity prices in Europe are starting to normalise again
Russia-Ukraine war
€600/MWh
• Supply shortages triggered a sharp

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increase in energy prices globally €500/MWh Dec’23:

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Campbell Lutyens • Urgency to reduce dependence on €81/MWh
€400/MWh on average
Russian fossil fuels has

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accelerated the transition to clean €300/MWh

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energy across Europe

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Market context
context €200/MWh
2015-2021: €53/MWh on average
Increasing corporate focus

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€100/MWh
• Corporates are increasingly

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€0/MWh
focused on bringing energy 2015 2016 2017 2018 2019 2020 2021 2022 2023

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GP landscape
production onsite, to ensure
security of supply

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France Germany Italy Spain

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Russian gas imports into the EU have decreased In 2023, Russia only accounted for 15% of
LP demand for Energy efficiency initiatives
EU gas imports, compared to 45% in 2021

fo
energy transition
• Launched to aid decarbonisation by 71% since 2021

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and increase energy security Norway
Others 10%
• Include the development of new 160 bcm 30%

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Energy transition 71% decrease
technology (e.g. smart meters, 140 bcm Qatar 5%

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secondaries 150 bcm
smart grids) and repurposing 120 bcm

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waste heat from commercial and UK 6%
100 bcm
industrial processes
80 bcm Russia (LNG) 6%
Sector deep dives
80 bcm
60 bcm
40 bcm Russia (pipeline) 9%
43 bcm
20 bcm
0 bcm North Africa 14% USA 20%
2021 2022 2023

Sources: European Commission; Ember; Energy and Climate Intelligence Unit; Infrastructure Investor

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 Supply Chain Bottlenecks
HOME

Raw material shortages, price volatility, geographic sourcing dependency and port congestions have led to production
constraints, raw material procurement challenges, increased construction costs and extended project times

CONTENTS Range of minerals required by energy transition technologies

Raw materials & minerals
Electric
• Shortage of key minerals and Power Vehicles Hydrogen
Other Uses

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materials required for energy Solar Wind Grids & Batteries Electrolysers Nuclear Hydropower

on
Campbell Lutyens transition technology have resulted Aluminium Construction, transport, industry, beverages
in increased costs for these

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materials Cobalt Consumer electronics, steel alloys

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• For example, turbine costs for

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Market context
context offshore wind farms increased by Copper Industry, construction, electronics, wiring
38% between 2021 and 2023

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Graphite
(for Anodes) Steel production, lubricants, pencils

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Manufacturing bottlenecks

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GP landscape Lithium Consumer electronics
• Focus needs to shift onto
increasing economies of scale and

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Neodymium Magnets for industry, consumer electronics
decreasing the cost of technologies

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LP demand for • Potentially can be achieved
Nickel Steel alloys

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energy transition
through public-private partnerships

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to boost manufacturing capacity Palladium
Auto catalysts
and regional coordination and Platinum

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Energy transition
Polysilicon Alloys, lubricants, semiconductors

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secondaries
Rising labour costs & shortages

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• Skilled labour is required to Silver Jewellery, industry, investment
assembly energy transition
Sector deep dives technology Steel Construction, transport, consumer goods
• Shortage to be exacerbated by
increasing number of energy Uranium Defence
transition infrastructure projects Importance of material to clean energy technology:
High Mid Little/no requirement, or not applicable

Sources: Energy Transition Commission; World Bank; Energy Monitor; McKinsey

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 Inflationary Environment
HOME

Elevated inflation and high interest rates continue to impact the energy transition

CONTENTS Inflation peaked in 2022, but is yet to return to pre-2020 levels of ~2%. Interest rates remain elevated
Increased equipment and as governments attempt to control this inflation
materials costs
12% 6%

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• Impacts the competitiveness of

on
10% 5%
Campbell Lutyens renewable energy
8% 4%

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Interest rates
• Leads to a slower adoption of clean

Inflation
6% 3%
energy technologies

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4% 2%

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Market context
context 2% 1%
Increased financing costs

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0% 0%
• Renewable projects are very
-2%2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024-1%

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capital-intensive and can be reliant
on subsidies, and therefore highly

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GP landscape Euro area - inflation (HICP) United Kingdom - inflation (CPI) United States - inflation (CPI-U)
sensitive to interest rate levels Euro area - interest rate United Kingdom - interest rate United States - interest rate

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• Studies have shown that 2%

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High inflation and interest rates have resulted in an elevated levelized cost of energy for renewables
LP demand for increase in the risk-free interest rate
projects

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energy transition pushes up the levelised cost of
electricity for a renewables project Onshore wind PV utility-scale

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• According to the IEA, the
by 20% global average levelized

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Energy transition costs of energy (LCOEs)

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secondaries for onshore wind and
Lowering of returns
solar PV are expected to

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• The inflation-induced increase in remain 10-15% above
premia for developers is eroding 2020 levels in 2024
Sector deep dives returns for renewable energy assets
• Managers are seeking to maintain
higher returns by launching and
developing renewables platforms,
rather than investing in single assets

Sources: Bank of England; Office of National Statistics; European Central Bank; Bureau of Labour Statistics; FRED; IEA; Wood Mackenzie

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 Policy & Regulation
HOME

Policy and regulatory developments continue to support the energy transition

CONTENTS Europe United States

Continued policy development
• Governments are enacting policies Energy Efficiency Act - More stringent efficiency and Since its signing in August 2022 to date, the Inflation
to support green energy, including reporting requirements introduced, with a particular Reduction Act has resulted in the announcement of:

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subsidies and incentives for focus on data centres

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Campbell Lutyens $473 billion of investment in new projects,
renewable energy projects and manufacturing and supply agreements, equivalent to

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infrastructure over 30 years’ worth of American clean energy
Decree Law on Energy Security - Expected to

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• In turn, this is stimulating private mobilise €27 billion for renewable power investment1
investment in the energy transition production and energy security $600bn

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Market context
context
$500bn $473bn

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Increasing regulatory risk “Ecological plan” - Phase-out of coal (conversion $400bn
• Policy stability is key - any political $270bn

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to biomass plants) and target to produce one $300bn
uncertainty or frequent policy million electric vehicles by 2027

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GP landscape
$200bn
changes will slow down progress

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and undermine investor confidence $100bn
National Energy and Climate Plan - If passed,

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$0bn
expected to mobilise €294 billion (85% private)
LP demand for Uneven policy progress Within 12 months of IRA Within 20 months of IRA
to meet enhanced emissions reduction targets passing passing

fo
energy transition
• While progress is being made in the

rO
EU and the United States, some >130 new/expanded facilities for clean energy
countries are lagging in their policy Policy roll-back - Bans delayed to 2035 for internal manufacturing announced, expected to add >115 GW
combustion engine vehicle sales and installation of

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Energy transition development manufacturing capacity across wind, solar and batteries
oil and liquified petroleum gas boilers

op
secondaries
80
Political pushback Solar

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Manufacturing facility
projects announced
Asia Pacific 60
• There is political pushback against
Wind
Sector deep dives
the energy transition in some Climate Transition Bonds – $11 billion of first 40
nations, with countries such as the bonds (10-yr and 5-yr) were offered in Feb‘24
United Kingdom even rolling back 20
policies as a result Battery
0
Regulatory amendments – Launch of carbon 0 10 20 30 40 50 60 70 80 90
capture, utilisation and storage act Weeks since Aug 2022

Notes: (1) Reference period covering 1981-2022

Sources: American Clean Power Association; European Council; White & Case; Deloitte; Reuters; ESG Today; UK government; BBVA Research; Japan Credit Rating Agency; Argus Media

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 HOME

CONTENTS

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Appendix

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 Private capital raising for the energy transition
HOME

Energy transition is the fastest growing sub-sector in infrastructure

CONTENTS • Substantial increase in the number of infrastructure funds and Infrastructure equity funds raising in the last seven years
volume of capital being sought over the last 18 months 700
575 621
600
• A large part of this growth has been driven by the dedicated energy

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500 444

Capital ($bn)
on
transition strategies that have been launched alongside flagship

# of funds
Campbell Lutyens 345
400
products 264

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300 210 241
• In CL’s experience, diversified funds are also investing 30-40% of 200 173

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their capital in energy-related infrastructure 100 128 194 201 208 219 342 544 556

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Market context 0
2017 2018 2019 2020 2021 2022 2023 2024

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Increase in the number of GPs raising specialist energy YTD
>50 transition funds over the last two years Aggregate capital targeted ($bn) No. of funds raising

pr
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GP landscape

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Large PE and infrastructure GPs have sought to launch a
>40

ed
fund product dedicated to energy transition
LP demand for
Energy transition funds in market

fo
energy transition

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Of aggregate capital being raised is for specialist energy
30% transition funds

ct
Energy transition
>110 energy transition funds

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secondaries

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Of specialist energy transition funds that are looking to
56% be raised are “first-time” funds
Sector deep dives

Of specialist energy transition funds that are looking to

>$170bn aggregate target fund sizes
77% be raised are “first-time” or “second-time” funds

Sources: Preqin; Inframation; CL research

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 GP trends
HOME

Key GP trends in the energy transition Energy transition GP types (equity strategies only)

CONTENTS Private markets

Increasing • More visible segmentation by fund sizing has increased distinction
fund size between GPs playing in the larger part of the market (funds >$2bn) and
Platform extensions Specialist energy

C
stratification those playing in the small/mid-cap market (funds <$2bn) from generalist GPs transition GPs

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Campbell Lutyens

• Many large cap PE/infra-GPs have launched or will be launching dedicated

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Large GP # funds in
energy transition strategies, alongside flagship products >58 >59
market

en
product
extensions • This has been achieved by reallocation of team resource internally,

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Market context
hiring of new teams or, in some cases, through acquisitions/consolidation Total amount

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of capital >$110bn >$64bn
• The proportion of emerging or new managers operating in this sector is sought
Numerous

pr
very significant (24% of the market)
emerging

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GP landscape
managers • Whilst some of the funds will be successful, it is likely that, despite
Listed energy transition funds
increasing demand from LPs, several will not get raised

ar
ed
• Many dedicated renewable energy funds have widened their scope of # funds in
LP demand for 23
strategy to include other elements of the energy value chain (e.g. storage, market

fo
energy transition
Convergence EV charging or energy efficiency)

rO
of strategies
• Convergence of fund strategies, with majority of funds now effectively Total amount
“diversified” energy transition of capital $8bn

ct
Energy transition sought

op
secondaries
• Most funds are targeting a high level of returns, i.e. 15%+ or 20%+, with a
Higher

us
number explicitly stating the funds sit in between PE and infra
returns
sought • Super core / core part of the market is less attractive due to higher
Sector deep dives interest rates and relative attraction of fixed income Figures above do not include diversified strategies with exposure to
energy transition or climate strategies.

“Platform”- • Increased emphasis on “platform”-orientated strategies where GPs are

focused trying to build (i) management teams; (ii) assets; and (iii) forward pipeline
strategies in order to command a premium on exit

Sources: Preqin; Inframation; CL research; Individual websites of each manager listed above

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 Mega cap GPs1
HOME

Private infrastructure equity funds target sizes:

$17.0bn

CONTENTS Previous vintage fund size Latest vintage fund size (target/closed)

$12.0bn

C
on
Campbell Lutyens

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$7.0bn $7.0bn
[TBD] $6.0bn

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$5.0bn [TBD] [TBD] $5.0bn
$4.0bn $4.4bn

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Market context $3.0bn $3.0bn
$2.0bn $2.0bn $2.5bn
$1.5bn

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$1.0bn
[TBD]

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GP landscape

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Target returns Target returns
LP demand for Manager Latest fund (Gross IRR) Manager Latest fund (Gross IRR)

fo
energy transition
Permira Permira Climate Investing I [undisclosed] ArcLight ArcLight Energy Partners VIII 20%

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EIG EIG Energy Transition Fund 13-15% EQT Transition Infrastructure I Mid-high teens

ct
EnCap EnCap Energy Transition Fund II 18-20% TPG Rise Climate Transition Infrastructure 15%+
Energy transition

op
secondaries Carlyle Carlyle Renewable and Sustainable Energy Fund II High teens Stonepeak Global Renewables Fund II Low teens

us
Macquarie Macquarie Green Energy Transition Solutions 18-20% Actis Energy Fund 6 20%
I Squared I Squared Energy Transition I 13-15% Blackstone Energy Transition Partners IV 15%
Sector deep dives Ares Ares Climate Infrastructure Partners II 18-20% BlackRock Global Renewable Power Fund IV 12-14%
IFM IFM Net Zero Infrastructure Fund 10-12% KKR Global Climate Fund High teens
Apollo Apollo Clean Transition Equity Partners II 20% CIP Infrastructure V 15%
ECP ECP Fund V 20% Brookfield Global Transition Fund II 15%

Notes: (1) Asset managers with an overall AUM of at least $10 billion have been included in this slide
Sources: Preqin; Inframation; CL research; Individual websites of each manager listed above

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 Europe headquartered GPs (mid & small cap)
HOME In market/pre-launch Open-ended Closed

Octopus Sustainable Infra £0.3bn Pioneer Point II €0.8bn NextPower V $1.5bn Qualitas Energy V $2.4bn
Suma Climate III €0.3bn Glentra I €0.8bn HitecVision New Energy II $2.0bn
WATTS.green Renewable €0.2bn Basalt ET $0.6bn Luxcara V €2.0bn
15%+ White Summit Decarb €0.6bn
Niam Infra I €0.2bn
CONTENTS BaltCap Infra II €0.2bn Eiffel ET €0.5bn
Infranode Futurum I €0.5bn
EOS Renewable II €0.3bn CIP Advanced Bioenergy I €0.8bn Omnes Capenergie V €1.4bn Macquarie GECO $5.0bn

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Equita Green Impact Fund €0.3bn RAISE I $0.8bn Foresight EIP II €1.3bn CIP Energy Transition €3.0bn

on
Campbell Lutyens Kobus Renewable Energy III €0.1bn Quinbrook Renewables Impact £0.6bn InfraGreen V €1.2bn Mirova ET VI €2.0bn
Capital Dynamics Clean Energy UK £0.6bn Capital Dynamics Clean Energy CIP Global Energy Transition [TBD]

fid
€1.0bn
Greencoat Bioenergy I £0.5bn Europe
SUSI Energy Transition Fund €1.0bn

en
Eurazeo Energy Transition €0.5bn
13–15%
Octopus Energy Transition €0.5bn

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Market context
(Estimated target gross IRR)

Low Carbon Renewables €0.5bn

KGAL Energy Transition €0.5bn

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Everwood Renewables Europe V €0.5bn

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Aurea Renewables €0.5bn
Lazard Sustainable Private Infra [TBD]

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GP landscape

ar
ed
TiLT Energy Transition €0.3bn Tages Helios Net Zero €0.8bn CMA CGM $1.5bn EIP 2022 $4.0bn
LP demand for L&G NTR Clean Power €0.8bn
Epopee Infra Climat I fund €0.3bn Ardian Clean Energy €1.0bn Octopus Offshore Wind £3.0bn

fo
energy transition
ABN Sustainable €0.4bn HIH Green Energy Invest €0.8bn Foresight Core European Glennmont Clean Energy IV €2.0bn
€1.0bn

rO
RIVE Impact Fund €0.3bn Vortex IV $0.8bn Renewables Quinbrook III Net Zero $2.0bn
Prime Green Energy II €1.0bn
KGAL Green Hydrogen €0.3bn SDCL GESF €0.7bn

ct
DWS Infrastruktur €0.3bn Alantra N-Sun €0.7bn
Energy transition
10–12%

op
secondaries Demeter Climate €0.3bn SWEN SWIFT II €0.6bn
Modus Clean Energy €0.2bn Taaleri SolarWind III €0.6bn

us
Asper Duke £0.2bn NextPower UK £0.5bn
Conquest Sustainable Infra II €0.5bn
Capital Dynamics IX €0.5bn
Sector deep dives AIF Onshore Wind €0.5bn
Impax IV €0.5bn
Reichmuth Sustainable €0.5bn

HEP Solar Green €0.1bn Gresham House Storage £0.5bn Encavis V €1.2bn AIP II €4.0bn

<€0.5bn €0.5–1.0bn Fund sizes €1.0–2.0bn €2.0bn +

Sources: Preqin; Inframation; CL research
BACK NEXT Strictly private and confidential Campbell Lutyens | 17
 North America/Rest of the world headquartered GPs (mid & small cap)
HOME In market/pre-launch Open-ended Closed
North America: Rest of the World:

SER Capital Partners II $0.8bn Ara Fund III $2.8bn KKR Asia Climate Fund $1.0bn
Neos Partners I $0.8bn LS Power V $2.5bn Federation Sustainable Australian RA AUD 1.0bn
Greenbelt Capital Partners III $0.8bn Hull Street Energy III $1.5bn Seraya Fund I $0.8bn
CONTENTS 20%+ Cresta Sustainable II $0.7bn Energy Equation I $1.0bn Actis Asia Climate Transition $0.8bn
Rockland IV $0.7bn Palisade Renewable Energy Fund AUD 0.5bn
Ember II $0.6bn

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Grey Rock ET $0.6bn

on
Campbell Lutyens
Harbert Infrastructure Fund VI $0.9bn Generate Capital (corporate structure) [TBD] HMC Capital Energy Transition Fund $2.0bn

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Climate Adaptive Infrastructure $0.8bn Vision Ridge IV $1.8bn HSBC Energy Transition $0.8bn
Elda Climate I $0.8bn Lotus IV $1.5bn SUSI Asia Energy Transition Fund $0.1bn

en
Slate Cities & Communities Impact $0.6bn Sandbrook I $1.5bn

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Market context 15–20% Ara ET I $0.5bn Denham Sustainable II $1.0bn
(Estimated target gross IRR)

Bridge Solar $0.5bn True Green V $1.0bn

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Lime Rock New Energy Fund II $0.5bn Azimuth V Energy Evolution Fund $1.0bn
Spring Lane II $0.3bn

pr
TEP Next Decade [TBD]

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GP landscape
Edelweiss Alternatives Climate Fund $0.5bn

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Excelsior Renewable II $0.8bn Eversource Climate Investment Partners II [TBD]

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Harrison Street ET $0.8bn VT Carbon Fund [TBD]
LP demand for Captona RE II $0.5bn Prostar Energy Infrastructure Fund II $0.8bn
13–15% Alcazar Energy Partners II $0.5bn

fo
energy transition Sustainable Infrastructure Fund IV $0.5bn
Patrizia APAC Sustainable Infra Fund $0.5bn

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Palisade Impact Fund AUD 0.4bn
Skip Essential Infrastructure Fund $0.1bn

ct
Energy transition

op
secondaries Albamen-Foxconn Green Development Fund CNY 7.0bn
CICC Carbon Neutrality Industrial Fund CNY 4.5bn

us
BlackRock Evergreen Fund $5.0bn Spring Renewable Energy Fund 2 JPY 13.0bn
Greencoat US Energy Transition $5.0bn NIIF-JBIC India-Japan Sustainability Fund INR 49.0bn
10–12%
Sector deep dives Tyr Energy Overland $2.0bn Tamil Nadu Green Climate Fund INR 20.0bn
UBS Eco-Transport Income Fund $2.0bn SPARX Green Battery Energy Storage System [TBD]
GSSG Solar Partners III $0.2bn

8% Morrison & Co Infrastructure Partnership $3.0bn

SPARX Renewable Energy Brownfield Fund II JPY 28.4bn
<€1.0bn Fund sizes €1.0bn +
Sources: Preqin; Inframation; CL research
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 Public markets
HOME Listed energy transition infrastructure funds

Listed energy transition infrastructure funds primarily investing in traditional renewables, including solar, onshore & offshore wind
CONTENTS
Fund name Market Cap • Their share price has been under significant pressure, with an average
decline of (–23%) since the start of 2023, mainly due to:

C
Greencoat UK Wind £3,240m

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Campbell Lutyens
The Renewables Infrastructure Group Limited £2,490m – Higher cost of capital and interest rate hikes

fid
Greencoat Renewables plc €988m – High inflation and supply chain issues having direct impact on
increasing operational costs for renewable funds

en
SDCL Energy Efficiency Income Trust £642m
Bluefield Solar Income Fund Limited £629m – PPA market being significantly under-subscribed, resulting in

tia
Market context
JLEN Environmental Assets Group Ltd £618m unprofitable economics

lly
Foresight Solar Fund Ltd £504m

pr
NextEnergy Solar Fund £445m

ep
GP landscape
Octopus Renewables Infrastructure Trust plc £397m

ar
Gore Street Energy Storage Fund PLC £320m

ed
Gresham House Energy Storage Fund Plc £293m
LP demand for
VH Global Sustainable Energy Opportunities Plc £279m

fo
energy transition
Aquila European Renewables plc £232m

rO
Triodos Energy Transition Europe Fund €173m

ct
Energy transition Downing Renewables & Infrastructure Trust plc £130m

op
secondaries US Solar Fund Plc £126m

us
Harmony Energy Income Trust Plc £109m
Atrato Onsite Energy £111m
Sector deep dives Triple Point Energy Transition £66m
Aquila Energy Efficiency Plc £63m
Ecofin US Renewables Infrastructure Trust £56m
Hydrogenone Capital Growth PLC £56m
Asian Energy Impact Trust £30m

Notes: (1) Market capitalisation sourced from Hargreaves Lansdown, as of 24th April 2024 or the nearest available date

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 Rapid pace of recent consolidation
HOME

Commentary and trends Recent select GP capital transactions in the energy transition space
Ann. ET Buyer
• Rapid pace of recent consolidation Date Buyer Target credentials type Stake Strategic rationale
CONTENTS caught the eye of the market, most Jan ’24 Entire focus on GP Seed • Buyer: Access to seasoned investment team and intellectual capital in
notably when CVC acquired DIF and sustainability, the sustainable assets space
Bridgepoint acquired ECP within the including • Target: Growth capital to enhance infrastructure, capital base, human
renewables

C
capital and overall resources to execute their investment thesis
same week in September 2023, before

on
Campbell Lutyens BlackRock acquired GIP and GA Jan ’24 Specialise in Bank 75% • Buyer: Accelerates growth in the sustainability business and build out
clean energy and the Group’s real asset portfolio
acquired Actis within days of each other

fid
green logistics • Target: Strategic partnership to accelerate growth through
in January 2024 Commerzbank's strong brand, broad distribution network, and

en
investment expertise
• Recent wave of capital transacted in the

tia
Market context Jan ‘24 Energy flagship GP 100% • Buyer: Opportunity to enhance product offering for LPs across the risk-
Energy Transition space has been fund series return spectrum, while gaining exposure to expected infra industry

lly
noticeable for: focused on ET tailwinds
opportunities • Target: Access to complementary LPs & incremental opportunities
– The range of different buyers that

pr
which sit between energy transition, digitalization and growth markets
have sought to enter the space

ep
GP landscape Jan ‘24 Invest heavily Platform 100% • Buyer: Acquisition of scaled private markets infrastructure capabilities
into clean energy to diversify earnings base and drive future growth
– GPs, Platforms, Banks and Stake

ar
and decarb. • Target: Access to Blackrock’s corporate and sovereign relationships to
specialists have been buyers drive incremental deal flow and leverage complementary LPs

ed
LP demand for – The diversity of the different Sep ’23 Pivot from O&G GP 100% • Buyer: Strategic addition to BPT’s platform, adding infra investment
to clean energy capabilities, also aligning with its IPO strategy of achieving a more

fo
energy transition
backgrounds to the Energy power generation diversified income stream

rO
Transition targets • Target: Accelerate growth ambitions in Europe & NA opening new
areas for expansion given the complementary investment strategies
– Range from ex O&G players (such and geog. Footprints

ct
Energy transition
as ECP) to specialists (Aquila,

op
secondaries Sep ’23 Strong ESG GP 60% • Buyer: Building infrastructure capabilities to complement PE and
SER), and credentials with credit offering

us
growing # of ET • Target: Accelerates growth / builds global reputation whilst
assets
– Noticeable room for growth in maintaining autonomy
geographies outside of Europe and Jul ’23 Launching 2nd GP stake Mino. • Buyer: Access attractive returns and stable income streams
Sector deep dives ET fund specialist
North America • Target: Bring strategic capabilities and balance sheet capital to
targeting $5bn accelerate growth trajectory
– The variety of different ownership
Apr ’23 Deliver LP 20% • Buyer: Establish a strategic partnership to support Samsung’s
structures from small minority stakes sustainable infra ambition in infrastructure as an asset class
to path to control, and acquisitions in line with the • Target: Accelerate next growth phase, developing new products and
SDGs strategies

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 Push and pull factors work together to drive consolidation
HOME

Key factors pulling the buyside to Energy Transition targets Key factors pushing the sell-side towards consolidation

CONTENTS •
• Driven by corporate and government goals Growth capital to facilitate scaling of
Platform
Market tailwinds • Expectation that ET will become a existing products
expansion

C
standalone asset class over the near-term • Seed new product launches
Growth

on
Campbell Lutyens
capital
•

fid
• Significant investable opportunity across Talent acquisition and retention through
Breadth of
infrastructure and private equity / venture Talent growth capital, but also (in the case of

en
opportunity
sub-sectors acquisitions) brand name

tia
Market context

lly
• Attractive space given alignment with Access to distribution capabilities and new
Sustainability Pull Push Augment the
increasingly pressing ESG and sustainability investor channels
investor base

pr
thematic
goals • If acquisition, less DD constraints for LP

ep
GP landscape

ar
• Investible ET opportunities are by nature • Facilitate access to higher GP commit

ed
High-returning high-returning and in the value-add (mid- Fund GP commit quantum to continue generating investor
LP demand for high teens IRR+) given greenfield nature alignment as fund sizes increase

fo
energy transition

rO
• Given recent consolidation trend, there is • Consolidating market creates peer set
Competitive
Scarcity of targets timeline pressure on the buyside as increasingly boosted by growth capital, an

ct
Energy transition market
landscape of independent targets narrows augmented LP base

op
secondaries

us
Used to tee up • Reports of CVC and General Atlantic IPOs • Given recent consolidation trend, remaining
liquidity event by would be on the back of significant deals in Scarcity of partners potential partners with optimal strategic
Sector deep dives refining equity story the ET infrastructure space and cultural fit are disappearing

Strength of factors pulling the buyside towards energy transition targets and pushing these targets towards consolidation
set to continue to drive the consolidation trend

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 HOME

CONTENTS

Campbell Lutyens

C
on
fid
Market context context

en
tia
lly
GP landscape

pr
ep
LP demand for energy
LP demand for energy transition

ar
transition

ed
fo
Energy transition

rO
secondaries

ct
op
us
Sector deep dives

Appendix

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 Investment universe for LPs
HOME Example subsectors attracting specialist private capital
An array of sub-sectors spanning the energy transition value chain which sit across infrastructure, private equity/venture

CONTENTS Infrastructure Private Equity/Venture

C
Wind / solar

on
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Hydro

fid
District heating

en
Sustainable transportation

tia
Market context
Energy storage

lly
Transmission eff’ncy

pr
Large &
established Smart grids

ep
GP landscape

Small &

ar
Energy efficiency
growing

ed
Geothermal
LP demand
demand for
for
Biogas & biomethane

fo
energy transition
transition
On-site PV

rO
Energy analytics & smart tech

ct
Energy transition
Green hydrogen / ammonia

op
secondaries
Carbon capture

us
Green industrial processes
Sector deep dives Carbon capture (direct air capture)

Other hydrogen technology

Emissions & climate data tracking

Returns

Sources: CL analysis

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 LP allocations to energy transition
HOME

LPs are increasing their focus on energy transition investments globally

CONTENTS Europe & Middle East North America

Insurance company Public sector pension Public sector pension Public sector pension

C
Sustainable Investment and Stewardship $100 billion investment target for climate solutions
Investment target of €6 billion in climate solutions Launching a multi-asset climate solutions fund

on
Campbell Lutyens Strategies allocation to grow to 1% of AUM by 2030, over double the current figures of $47
by 2030
(includes climate transition investments) billion

fid
NY State
Public sector pension Public sector pension

en
Common
Retirement Public sector pension Public sector pension
Fund

tia
Market context
Target to invest £1.35 billion in private market Target to invest £2.5 billion in decarbonisation
$40 billion climate solutions investment target by Proposal to increase allocation to climate

lly
climate investments from 2022-2024 technologies and services between 2022-2026
2035 (initially $20 billion by 2035) investments from $2 billion to $6 billion by 2035

pr
Insurance company Pension investment
Public sector pension Public sector pension
manager

ep
GP landscape
Target to invest an additional €20 billion in Target for at least 70% of infrastructure Target of C$70 billion in “green assets” (low carbon) C$5 billion allocation dedicated to decarbonising

ar
renewable energy and low carbon technology by investments to be in Sustainable Infrastructure. and C$7.5 billion in “transition assets” (heavy industries
40% (i.e. over half) to be in climate solutions emitters to become climate-aligned) by 2026

ed
2030

LP demand
demand for
for Pension investment
manager Investment manager Pension investment Pension investment

fo
energy transition
transition manager
manager

ABP (largest Dutch pension fund) is about to renew
their mandate with APG, having increased their
infrastructure allocation from 4% to 7% in Dec’23.
rO
Real assets fund, which includes a significant
Created two climate buckets: (1) C$10 billion fund C$1 billion Energy Transition Opportunities Pool to
focus on energy transition funds
for decarbonising high-emitting industries; and (2) invest in climate transition managers. The fund will

ct
a target to hold C$54 billion in “low carbon” / consider co-investment opportunities, and will look
Energy transition Energy transition investments are a key part of this
“green assets” by 2025 to make direct deals in the future

op
secondaries mandate

us
Launched at COP28, ALTÉRRA is a catalytic climate fund aiming to mobilise $250 billion
of institutional investment in the energy transition by 2030
Asia Pacific
Sector deep dives Altérra Transformation Altérra Acceleration
$25 billion Sovereign wealth fund Public sector pension
$5 billion
Facility for investment risk $30 billion Anchor investor / co-investor
mitigation in developing energy for climate strategies
transition fund Three investment platforms dedicated to Allocating A$10bn to energy transition assets in
countries in the Global South Both direct investments and accelerating sustainable investment: UK and Europe (initially focussing on direct
fund partnerships • Climate Change Opportunities Portfolio investments)
• Sustainability Solutions Group
• Transition and Sustainable Finance Group

Sources: CL analysis; Infrastructure Investor; New Private Markets; Brunel Pension Partnership; Allianz; Local Pensions Partnership Investments; GIC; Net Zero Investor

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 LP perspectives – portfolio construction
HOME

Most LPs are allocating to the energy transition out of generalist infrastructure buckets

CONTENTS Regional distribution of respondents EMEA

The majority of LPs NA
are still allocating to 27% 45%

C
energy transition funds APAC

on
Campbell Lutyens out of generalist 28%
allocations

fid
en
Under a third of LPs

tia
Market context have energy transition
investments

lly
comprising over 25% of

pr
their overall

ep
GP landscape
infrastructure portfolio

ar
LPs are unwilling to Are you investing in energy transition funds What is the size of the energy transition

ed
LP demand
demand for
for compromise on returns out of a generalist infrastructure bucket or allocation as a proportion of your overall
a dedicated energy transition allocation? infrastructure portfolio?

fo
energy transition
transition when it comes to

rO
energy transition
investments, with the >75% <25%

ct
Energy transition vast majority requiring 4% 69%

op
secondaries
>10% returns
50–75%

us
10%
Sector deep dives 25–50%
17%
Generalist Combination
Dedicated
58% 15% 27%

Sources: CL analysis

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 LP perspectives – returns and SFDR classification
HOME

The majority of LPs are seeking higher returns, but not necessarily Article 9 designation under SFDR

CONTENTS LPs are unwilling to What is the targeted gross IRR for your Do you require energy transition funds to be
compromise on returns energy transition allocation? classified as Article 9 under SFDR?

C
when it comes to

on
Campbell Lutyens energy transition No specific target 15%+ Yes No
investments, with the 10% 42% 20% 80%

fid
vast majority requiring

en
>10% returns <10%

tia
Market context

In terms of wider ESG 9%

lly
considerations, being

pr
designated as Article 9

ep
GP landscape
under SFDR is not a 10-15%
requirement from most

ar
39%
LPs

ed
LP demand
demand for
for

fo
energy transition
transition However, many LPs do

rO
require an Article 8
classification

ct
Energy transition
SFDR Article 8 classification is [the] minimum. We Usually, yes. However, more flexible now given

op
secondaries
prefer to invest in SFDR Article 9 classified funds problems around full clarity [around Article 9

us
only classification]

Sector deep dives

Austrian pension fund Global consultant

Sources: CL analysis

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 HOME

CONTENTS

Campbell Lutyens

C
on
fid
Market context context

en
tia
lly
GP landscape

pr
ep
LP demand for energy

ar
transition

ed
fo
Energy transition
Energy transition secondaries

rO
secondaries

ct
op
us
Sector deep dives

Appendix

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 Scope for secondary participation
HOME Sub-sectors
Infrastructure Private Equity/Venture

Wind / solar
CONTENTS Hydro
District heating
C

C
Sustainable transportation
There is a range of

on
Campbell Lutyens Energy storage
sub-sectors within

fid
Transmission eff’ncy
Energy Transition, Large &
established Smart grids

en
and some are better
placed for secondary Energy efficiency

tia
Market context Small &
participation than growing Geothermal

lly
others Biogas & biomethane

pr
On-site PV

ep
GP landscape
Energy analytics & smart tech

ar
Green hydrogen / ammonia

ed
Carbon capture
LP demand for Green industrial processes

fo
energy transition
Carbon capture (direct air capture)

rO
A B Other hydrogen technology

ct
Emissions & climate data tracking
Energy transition
transition

op
secondaries Returns
A B C

Sector deep dives • Returns for operational
traditional renewables (wind /
solar) and low risk energy
efficiencies initiatives are too
low for traditional secondary
investors and many institutions
us
• Participation is most likely in
traditional renewables platform with
a degree of greenfield risk, and
some of the established
technologies in the mid-risk/return
spectrum
• Traditional secondary investors are keen to avoid tech
and revenue model risk
• Institutional investors are more likely to participate on
a case-by-case basis, with some establishing pockets
specifically for less-established technologies

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 Scope for secondary participation
HOME Transaction type

CONTENTS Notwithstanding the application of ESG criteria in GP-led, from a pricing perspective, they still need to stack up relative to
LP-led transactions which many secondary investors are finding they can access at deeper discounts in the current market

C
on
Campbell Lutyens

Notwithstanding the

fid
application of ESG
GP-led transactions LP-led transactions

en
criteria in GP-led, from

tia
Market context
a pricing perspective, • Typically involve new investment vehicles / structures • Elicits no change to fund structures; transaction are

lly
they still need to stack being set up simply replacing LPs
up relative to LP-led

pr
• Buyer has opportunity to have significant input on new • Incoming buyer has limited influence over underlying
transactions which

ep
GP landscape fund documentation and reporting requirements GPs on the entry to the exiting fund
many secondary
• Transaction can be strategic in nature for GPs and be a • Transaction is generally not strategic for

ar
investors are finding
gateway to demonstrating additional ESG focus underlying GPs

ed
they can access at
LP demand for
deeper discounts in

fo
energy transition
the current market

rO
ct
Energy transition
transition Allow for the implementation of best-in-class GP is unlikely to change existing ESG reporting.

op
secondaries impact frameworks, such as SFDR Article 9 As a result, buyers’ focus for LP-led transactions has
to be on funds with pre-existing impact frameworks

us
Sector deep dives

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 Scope for secondary participation
HOME Investor type
Examples of infrastructure secondary market participants
There is a general
dichotomy across the
CONTENTS • Since many ET opportunities sit in renewables • General priority for many in the market
different types of
platform build-outs, institutions are often
buyers • Less appetite for risk in the energy
better-placed (vs. secondary

C
transition space
investors) to fund such

on
Campbell Lutyens 1
opportunities given the • A reluctance to finance

fid
balance of follow-on opportunities with tech
to existing NAV or revenue model risk

en
• Some LPs have • While this restricts

tia
Market context
founded specific some participation

lly
pockets with the in single assets /
stated aim of co-investments,

pr
focussing on higher risk

ep
GP landscape
ET prospects technologies (e.g.

ar
• This includes EV charging) are
satisfactory as part

ed
some investors
LP demand for historically of a diversified LP

fo
energy transition portfolio
focussed on

rO
direct investing, • Many new funds
but are willing to More recent buy-side entrants:
with strategy include

ct
Energy transition
transition invest in funds (or energy transition

op
secondaries through co-investment)
for “non-vanilla” ET • Some funds are Article 8,

us
investments but many secondary investors
feel it too materially narrows
Sector deep dives • Notwithstanding this, some LPs the potential universe
(particularly US LPs) have a renewed for opportunities
focus on oil & gas investments
(for higher returns)

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 HOME

CONTENTS

Campbell Lutyens

C
on
fid
Market context context

en
tia
lly
GP landscape

pr
ep
LP demand for energy

ar
transition

ed
fo
Energy transition

rO
secondaries

ct
op
Sector deep
divesdives

us
Sector deep

Appendix

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 Energy transition sector deep dives
HOME

The following areas have been of increasing interest to private investors over the last year, due to the pivotal role they can
play in the energy transition

CONTENTS

C
Energy Renewable Green

on
Campbell Lutyens

efficiency energy gas

fid
en
tia
Market context

lly
pr
ep
GP landscape

ar
ed
LP demand for

fo
energy transition

rO
ct
Energy transition

op
secondaries

us
Sector deep dives

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 Energy Efficiency
HOME

Energy efficiency is crucial for reducing energy demand, lowering costs, enhancing energy security and minimising
environmental impact, thereby facilitating a more sustainable energy transition

CONTENTS Growing demand Key opportunities for private investors

• Energy efficiency is measured through energy intensity 01 • Buildings may be (retro)fitted with the

C
i.e. the amount of energy required to produce a unit of GDP
following:

on
Campbell Lutyens (typically kg of oil equivalent per €1,000 GDP)
Residential – Smart meters – Heating pumps

fid
• While 2022 saw global energy intensity improvements of 2% on the buildings – Insulation – Local energy

en
prior year, this dropped to below 1.5% in 2023, largely due to an – LED lighting production
increase in energy demand (e.g. rooftop solar)

tia
Market context

lly
• Annual improvements of over 4% are required until 2030 to be on
track with the Net Zero Emissions by 2050 (NZE) target 02

pr
Municipal

ep
GP landscape • (Retro)fitting on a larger scale, and the
buildings and automation of operational processes

ar
5% other public
Primary energy intensity improvement

ed
infrastructure • More stringent targets/regulation than
LP demand for x2 greater annual residential buildings
4%

fo
energy transition improvement

rO
required to be on
3% track 03

ct
Energy transition • (Retro)fitting, automation, repurposing of

op
secondaries
2% waste heat from industrial processes,
Commercial & industrial-scale cooling and ventilation

us
Industry “C&I”
1% • Also includes larger scale renewable
Sector deep dives energy generation
0%
2001-10 2011-20 2021 2022 2023E 2022-30
NZE

Sources: IEA - Smart Grids; Infrastructure Investor; IEA - Data Centres and Data Transmission Networks; IEA – Energy Efficiency; European Commission

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 Energy Efficiency (continued)
HOME

An increasing number of deals are being executed across the residential buildings, municipal buildings and the commercial
and industry sector

CONTENTS Drivers of increased investment Investment examples

01 • In April 2024, Pioneer In December 2023, Ardian-

C
Growing focus on decarbonisation is putting
acquired Simet, an energy backed GreenYellow
pressure on shareholders to consider energy

on
Campbell Lutyens Increasing efficiency company. acquired a portfolio of energy
corporate net efficiency improvements efficiency assets in mainland

fid
Simet is active in public
zero ambitions • Half of the world’s largest publicly-listed lighting, and the construction
France and overseas

en
territories.
companies now have net zero targets and management of
municipal buildings. The assets include rooftop

tia
Market context
solar plants and an energy
02

lly
efficiency PPP.
• Following recent volatility in power prices,

pr
improving energy efficiency is becoming
increasingly popular way to achieve cost savings In September 2023, an Arcus Tiger-managed Granite

ep
GP landscape
Cost savings portfolio company, Horizon, Comfort installs energy-
•

ar
Improved efficiency means reduced electricity completed a second add-on efficient heating, cooling and
consumption, lowering costs and reducing investment, with the ventilation systems for

ed
pressure on the grid acquisition of National Grid residential properties.
LP demand for Smart (NGS) from the

fo
energy transition In March 2023, it acquired a
National Grid.
further three heating, air

rO
03 • Urgency to reduce dependence on Russian
In total, Horizon has installed conditioning and plumbing
over 1.49m smart meters. companies in Philadelphia.

ct
Energy transition fossil fuels has accelerated the transition to
Energy security

op
secondaries clean energy and increased the focus on energy
efficiency In February 2023, Stonepeak In 2021, Meridiam-managed

us
realised its investment in Bulldog Infrastructure Group
Madison Energy Investments, was awarded a 33-year PPP
Sector deep dives 04 • Energy-saving initiatives and obligations are
a C&I solar developer. contract to modernise the
central heating and cooling
being legislated across the world Under the four years of
plant at the University of
Regulatory ownership, a platform of 386
California’s Fresno State
drivers • This includes subsidies for households for MW solar projects across the
campus.
energy efficiency improvements (e.g. $14k per US was built.
household under the US IRA)

Sources: Net Zero Tracker; Pioneer Infrastructure Partners; Inframation; Arcus Infrastructure Partners; Granite Comfort; Tiger Infrastructure Partners; Stonepeak; Meridiam

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 Renewable Energy – Offshore Wind and Renewables 2.0
HOME

Renewable energy continues to present a wide range of opportunities to contribute to the energy transition

CONTENTS
Offshore Wind Renewables 2.0
Limited space on land and the higher levels of wind resource at Multi-technology and hybridised projects are increasingly attractive to investors in the renewable

C
Resources energy space, as the market matures and competition increases
sea are making offshore wind increasingly attractive

on
Campbell Lutyens
Improvements design and installation techniques are reducing Drivers of multi-technology portfolios

fid
Advances in
costs and increasing efficiency e.g. average turbine capacity
technology
01

en
Tailwinds was 4MW a decade ago and now 15MW turbines are being built
Higher Hybridisation of wind and solar can improve the generation
Projects are underway to increase integration of offshore wind power profile of an asset and allow higher prices to be captured, due to

tia
Market context Europe
with the continental grid e.g. North Sea Wind Power Hub prices complementary production times

lly
The USA is planning twelve offshore wind auctions over five
USA/APAC years, while Taiwan expects offshore capacity to increase by 15
02

pr
GW between 2026-2035 Scale/synergies between assets means that managers can
Cost

ep
GP landscape command lower costs e.g. engineering, production and
Costs Increasing costs and material & skilled labour shortages savings
construction (EPC) and operations & maintenance (O&M) costs

ar
Struggling Strong competition has resulted in unattractive pricing in some

ed
PPA auctions
LP demand for
Headwinds PPA auctions e.g. no bids in Sept’23 UK offshore wind auctions 03 Assets with energy storage components can have their batteries
Need for

fo
energy transition Installation is logistically challenging, requiring specialised skills charge in times of excess supply, monetising on this stored
Installation balancing
and technology. Once built, turbines must also be resilient supply of energy when production levels are low

rO
complexity
against extreme weather conditions and corrosive saltwater

ct
Energy transition
Global offshore wind capacity auctions1 planned for 2024 Investment examples

op
secondaries
United States In November 2023, EQT In June 2021, Pioneer

us
South Korea
Japan
Infrastructure agreed to created the renewables
EUROPE Finland acquire Statera, a battery platform company, Altano
(are enlarged) India Taiwan EUROPE
storage and flexible Energy.
Sector deep dives Norway
generation platform based in
Denmark Altano Energy is now one of
Estonia the UK, with 1GW of flexible
Lithuania the leading renewables
Ireland UK generation in operation or
Netherlands platforms in Spain, with
Offshore wind capacity under construction.
Belgium Germany hydropower, solar and wind
10,000 MW
5,000 MW assets.
France
500 MW

Portugal
Notes: (1) This chart does not include lease auctions taking place in Colombia, India, the UK and the US. Sources: S&P Global; MIT Technology; BBC; WindEurope; EQT; Pioneer Point Partners

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 Renewable Energy – Repowering and Data Centres
HOME

Improving the efficiency, sustainability, and reliability of energy generation and consumption

CONTENTS
Repowering Data Centres
Maximises energy output and maintains the viability of renewable energy projects by increasing Internet of Things growth, 5G adoption and advances in AI are leading to a significant increase

C
their efficiency, capacity and lifespan in energy usage due to higher demand for data processing, storage, and transmission

on
Campbell Lutyens
Corporates’ Corporates invest in renewable energy to power their data

fid
Advances in Repowering can triple the power output of a windfarm, while
sustainability centres and support their sustainability targets e.g. Google aims
technology using up to 25% fewer turbines

en
targets to operate its data centres on 24/7 carbon-free energy by 2030

tia
Market context Decline of
In Europe alone, by 2030, 78GW equivalent of windfarms will On-site renewable generation can help alleviate strain on the
Tailwinds existing Tailwinds Grid stress

lly
have been running for >20 years and will need repowering energy grid, increasing energy security and overall resilience
windfarms

pr
Government Government initiatives guarantee floor prices, with managers Cost Energy efficiency can significantly reduce operational costs

ep
GP landscape support savings
having the option to take merchant prices when higher through lower energy consumption and reduced cooling needs

ar
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Regulatory Some governments are limiting permits for data centres in
Competition Strong competition is pushing up premiums pressure residential areas
LP demand for

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energy transition
Headwinds Headwinds
Energy Renewable energy sources may be intermittent, posing

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Development Certain types of repowering projects may require further storage reliability issues, as current energy storage technologies may
risk development work e.g. re-permitting limitations not always provide a consistent supply of power

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Energy transition

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German Qualitas Energy has launched In December 2021, Arcus In May 2024, Brookfield In March 2022, GIP acquired

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windfarms a strategy to consolidate invested in Momentum announced a $10 billion a stake in CyrusOne, the
onshore wind repowering Energy, a Danish energy agreement with Microsoft to leading global hyperscale
projects in Germany, with company managing solar contract 10.5 GW of its data centre platform.
Sector deep dives projects acquired to date to plants and onshore wind renewable capacity growth.
Since the end of 2021, 100%
total 138MW once repowered. turbines.
Microsoft currently has over of energy procured for
Most recently in January Momentum seeks to 300 datacentres, and this CyrusOne’s European
2024, it acquired a 55% stake refurbish decommissioned number will continue to grow. facilities is renewable.
in a project in eastern wind turbines for use in
Germany. repowering projects.

Notes: (1) Operational or in construction at time of exit

Sources: S&P Global; Qualitas; ESG Today; Arcus Infrastructure; McKinsey; Financial Times; Infrastructure Investor; IEA; Microsoft; Inframation; Data Centre Magazine; Global Infrastructure Partners; CyrusOne

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 Green gas
HOME

Green gas, produced through the anaerobic digestion of natural waste, is lower-carbon alternative to natural gas

CONTENTS
Commercial tailwinds Opportunities across the value chain
Production Feedstock

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Complements electrification, supporting grid balancing and
Supplement of Upstream

on
Campbell Lutyens enhancing overall energy security and resilience. It is also a
electrification
good alternative fuel for heavy-duty vehicles and aviation

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Purification Carbon capture
Replacement for higher-carbon natural gas, and can
Midstream
Replacement Storage Upgrading

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Tailwinds
of natural gas leverage the existing infrastructure for natural gas

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Market context
More efficient and cost-effective production of gas Re-fuelling Heating
Technological Downstream

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through advances in renewable energy technologies Gas Industrial
advances
and gasification processes pipelines processes

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GP landscape
Policy drivers Investment examples

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Government support is crucial in facilitating the adoption of green gas: Danish biogas
In February 2024, Lightrock In January 2024, Infranode

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plants
invested in Velocys, a leading acquired 49% stakes in two
LP demand for
Renewable Regulation supporting biogas through sustainable aviation fuel Danish biogas plants owned

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energy transition
Energy Guarantees of Origin Certificates technology company. by Renegas.

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Directive II
EU Initiative requiring the blending of fuels to
Velocys’ technology is The investment is expected to
ReFuelEU compatible with a diverse enable to the plants to

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Energy transition aviation reduce carbon emissions range of feedstocks. double their capacity by the

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secondaries end of 2026.

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Green Gas In December 2023, Infravia- In June 2021, GIP acquired a
Extended until 2028, provides financial
Sector deep dives
UK Support
incentives for new biogas plants
managed Molgas acquired a stake in Signature Aviation,
Scheme 45% equity stake in Titan, a the world’s largest private
global liquified biomethane aviation terminal fixed base
(LMB) supplier. operator (FBO).

Tax credits for sites that generate and Titan is part of a consortium Signature Aviation is the first
US IRA
use biogas building the worlds' largest FBO to offer permanent
LBM plant in Amsterdam. supplies of SAF.

Sources: European Biogas Association; European Council; Ofgem; BioCycle; European Commission; Airbus; InfraVia; Inframation; Velocys; Signature Aviation

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 Offices
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Authorised and regulated by the Autorité Member FINRA /SIPC Regulated by the Monetary Authority of Singapore

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Market context de Contrôle Prudentiel et de Résolution

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GP landscape

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LP demand for

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energy transition
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Energy transition company in Australia (under Corporations Act 2001)

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