Legal & General Capital invests in Irish wind energy fund

British financial services group, Legal & General Capital has committed to investing up to almost half of a planned €250m investment fund aimed at financing alternative energy group NTR’s onshore wind projects in Ireland and the UK.

NTR yesterday announced that Legal & General has signed up as the anchor investor in the new fund, which is targeting equity of €250m.

The UK company will cover up to 47.5% of the investment, which could see Legal & General invest almost €119m.

Dublin-based NTR — which recently demerged its business, by retaining its European wind energy interests and spinning off its legacy toll-road assets to a new vehicle called Atlas Investments — is also set to be a significant investor in the new fund, by pumping €50m into it.

Meanwhile, it is also anticipated that a “select number” of other investors will join the fund during the first quarter of 2016.

NTR’s UK and Irish projects will have a capacity of 270 megawatts of power, which should generate enough electricity to power up to 170,000 homes and avoid more than 300,000 tonnes of CO2 emissions per year across the two countries.

The group has already acquired the first four assets for the fund to the tune of €62m, covering a combined power capacity of 55 megawatts.

These will be located in Scotland, Northern Ireland and the Republic and are ready for construction as land, planning consent and grid connection agreements are all in place.

The overall project will require total capital of around €670m; €420m more than is currently being sought.

The balance is being funded by debt. NTR added there will be further funds — which will be larger in scale — but no announcements regarding these are pending.

The group’s chief executive, Rosheen McGuckian said the new fund has an active pipeline of further investments across the UK and Irish markets.

“We have a rapidly growing pipeline of construction-ready onshore wind assets and we are delighted that Legal & General have committed to our first wind fund to include other investors, and to working with us on additional clean energy investment opportunities,” she said.

According to John Bromley — head of clean energy at Legal & General Capital — the recent Paris climate agreement shows a global recognition that the world’s energy system needs transformational change, but hard investment decisions are needed to deliver on carbon emission reductions.

“By using its balance sheet capital to pave the way for largescale, long-term institutional investment, Legal & General is channelling its investment might into helping revolutionise these technologies for the benefit of investors, consumers, and wider society,” he said.