Aquila Capital is launching a new fund called Energy Transition Infrastructure Fund “to invest in energy infrastructure assets that are essential to Europe’s energy transition,” including hydro.
The company says this fund advances on “three full invested predecessor funds.” ETIF will “pursue the three most important subsectors of the energy transition, namely renewable energy generation, energy storage and energy transportation,” according to a press release. This strategy will be launched as the Luxembourg-based Reserved Alternative Investment Fund, with a target volume of €750 million (US$933 million) and a term of 12 years.
The new strategy is primarily seeking investment in onshore and offshore wind power, photovoltaics, hydropower, electricity grids and heat networks, and energy storage, with an emphasis on greenfield projects. The geographical focus is on continental Europe and the Nordic countries, with possible additional allocations in Great Britain and in Central and Eastern Europe, Aquila Capital says.
Ten to 15 investments with an average equity ticket of €50 million (US$62 million) to €75 million (US$93 million) are planned.
“Europe is entering a new phase of the energy transition,” said Roman Rosslenbroich, chief executive officer and co-founder of Aquila Capital. “There has been significant progress in the development of renewable energy generation and grid parity has already been attained in many regions. In the coming years, investments in energy storage and grid capacity will become much more important. Our response to this development is the ETIF strategy, which allows investors to participate financially and ecologically in the Europe-wide energy transition on a sustainable basis.”
Aquila Capital was established in 2001. The company manages about 2,200 MW of renewable energy generation assets. These include six run-of-river hydro plants the company acquired from BKK in April 2017.
Earlier in 2017, Aquila Capital opened an office in Oslo, Norway, to coordinate investment and transaction management, as well as operations in the hydropower sector.
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