Australian bank Macquarie committed Thursday to target £3 billion ($3.84 billion) of new investment in green energy projects in the UK over the next three years, either directly or by arranging capacity from other investors, Kallanish Energy reports.
The company, which announced the purchase of the Green Investment Bank (GIB) off the UK government for £2.3 billion ($2.94 billion) yesterday, said the investments will be subject to the availability of suitable opportunities. The areas expected to receive the funds are energy efficiency, bioenergy, energy from waste, onshore and offshore wind, solar, tidal energy, and energy storage.
“GIB will target investments in both equity and debt and at all project stages, including development, construction and operation,” Macquarie added, in a statement.
Upon the merger completion, GIB will manage or supervise over £4 billion ($5.1 billion) of green infrastructure assets and projects, with investors including MEIF5, USS, GCP Infrastructure and the UK Government.
It will also establish three new investment vehicles: an offshore wind investment vehicle, a low carbon lending platform and a green infrastructure investment platform, Macquarie said.
Niall Stuart, CEO of trade body Scottish Renewables, said GIB played a key role in securing investment for renewable energy, particularly in offshore wind — where significant levels of capital were needed in a short period of time.
“We welcome Macquarie’s commitment to build upon the bank’s achievements to date and to maintain its focus on the huge opportunities for further investment in the UK’s low-carbon energy infrastructure,” he said.
Together, GIB and Macquarie have made £15 billion ($19.2 billion) of investments in the UK green infrastructure in the past five years.