Financing renewable energy projects

Across the globe, there is a structural shift from fossil fuels to renewable energy taking place. The energy transition reflects the European Union’s ambition of net zero carbon emissions by 2050 (EU Green Deal).

Investments in sustainability projects enable scalable impact investments. These are characterised by steady cash flows over long periods of time and an attractive liquidity premium compared with public alternatives. Reason for us to offer this future-proof investment strategy.

Climate neutral economy

Climate change and the energy transition are important themes for us. We seek to support a climate neutral economy with our investment products and services. To this end, we have formulated a number of specific investment ambitions that contribute to the development of renewable energy generation capacity. The ambitions are part of a larger set of sustainability ambitions for 2024.

Investable technologies

Our ambitions target two major renewable energy technologies in Europe to invest in: wind and solar. Offshore wind investment in particular provides opportunities to participate in scalable investments, making it an interesting investment option. Other new technologies include battery storage, hydrogen and floating offshore wind projects. We have already reached multiple milestones with investments in renewable infrastructure projects within Europe, including an investment in the world’s largest offshore wind project under construction: Dogger Bank.

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CASE STUDY

The world’s largest offshore wind project: Dogger Bank

a.s.r. is a senior lender in the groundbreaking Dogger Bank offshore wind project. Dogger Bank comprises three 1,200 MW wind farms that together will constitute the largest offshore wind project in the world. The project’s sponsors have committed equity to the impressive sum of £ 1.5 billion. Construction work started in the second quarter of 2020 and the first phase of construction is expected to be completed by 1 January 2024. The project has a very predictable revenue stream thanks to the 15-year fixed-price purchase contract awarded by the British government.

Read more about Dogger Bank.

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Comfort with your investment

We understand that you are looking for comfort in your renewable energy investment. We have an extensive network of strategic relations to maximise potential investment opportunities. In addition, our experienced deal teams work with leading international project finance banks with an international presence. And a.s.r. acts as a co-investor for its own balance sheet with a long investment horizon as a buy-and-hold investor.

Our focus is on investments in benchmark projects with limited political risk and/or limited dependence on off-market grants, and with significant equity contributions by sponsors. All potential investments are extensively screened by our dedicated ESG team. Credit approval can be considered conservative and is based on both quantitative and qualitative analysis. We coordinate larger projects with experienced bank lenders.

Why a.s.r. Renewable Infrastructure Debt?

• Scalable impact investments (probably SFDR 9) in high-profile projects within Europe and possibly eventually America and other OECD Member States.
• We will soon be launching the Renewable Infrastructure Debt Fund, in which third-party investors will be a.s.r.’s co-investors.
• The Renewable Infrastructure Debt Fund has a.s.r. as a co-investor with its ‘own book’, which also offers the option to participate in other investments already closed on a.s.r.’s balance sheet.
• Third-party investors can have the opportunity to contribute to the energy transition while at the same time benefiting from a.s.r.’s track record, expertise and market position.
• a.s.r. relies on long-term commitment in the sector, conservative credit approval and careful screening by a.s.r.’s dedicated ESG team.
• Investors may choose to participate actively in certain fund management elements.

The fund’s prospectus, which is still in the drafting phase, will provide more information on the sustainability objective.