Glennmont Partners has expanded its investment capacity in the clean energy infrastructure space and now has three funds under management – these are Fund I (2010) and Fund II (2013), which are fully invested, and now a new third Fund (2017). Opportunities are being sought for a portfolio of clean energy infrastructure projects in Europe. Glennmont is one of Europe’s largest investors focusing exclusively on investment in clean energy infrastructure. This announcement follows the successful refinancing of Glennmont’s 245MW Italian wind portfolio in October and the refinancing of the Sleaford straw-fired biomass plant in September – amounting to around €340m of capital raised over the course of 2017.
Glennmont’s strategy remains consistent with its past experiences: it seeks to invest in solar PV, offshore and onshore wind, bioenergy and small-scale hydro across the EEA; it will target to-be-built and recently operational assets with stable, predictable cash yields underpinned by regulated and contracted revenues.
Glennmont’s investment strategy is consistent with its prior portfolios of 355MW and 500MW respectively and is evidence of the growing importance of clean energy in the European energy portfolio. Fears of reduced profitability due to reducing government support schemes have been offset by the falling costs of renewable power produced; many new routes to market for power, such as the corporate PPA market; and the extension of a number of government support schemes.
Commenting on the search for investments, Glennmont CEO, Joost Bergsma said:
“Glennmont continues to believe that the clean energy market is attractive to investors and delighted to have expanded its investment capacity allowing us to continue to find and deliver value across a diversified portfolio of power generation assets. When we formed Glennmont in 2007 we were clear that our specialist focus on clean energy infrastructure investments would allow us to set the standard for the clean energy industry. Our Investment and Asset Management teams work together to identify, secure and add value to some of the best clean energy generation assets in Europe”.
Christopher Knowles, Head of EIB’s Infrastructure Fund and Climate Action Team said, “EIB welcome the announcement by Glennmont Partners that it has returned to the clean energy investment market and is investing its third clean energy fund. This news is indicative of the momentum behind the global shift towards low carbon technologies that we are seeing currently. With investment in clean renewable energy at record levels we can look forward to a similarly successful year in 2018 as we continue to drive innovation, create high value jobs and tackle climate change.”
Glennmont acknowledges the financial support provided by the European Investment Bank with the backing of the European Union through benefits from a guarantee from the European Union under the European Fund for Strategic Investments (“EFSI”) further to an agreement on the management of the EFSI and on the EU guarantee to be provided by the European Union entered into on 22 July 2015 by the EIB and the European Union, as amended, supplemented or restated (the “EFSI Agreement”).