PIC invests further £175m to fund solar energy

Written by Adam Cadle

14/06/2021

Pension Insurance Corporation (PIC) has provided £175m (€203m) of senior secured
debt funding, as sole investor, for a further 18 solar parks.

The solar parks, which are owned by Q-Energy, a leading European investor and asset
manager in the renewable energy sector, have been in operation for 13 years. They benefit
from the Spanish regulatory framework for the full term of the bond. This framework
structures payments from the Spanish electricity system and guarantees an agreed level of
return and therefore predictable cashflows to back PIC’s pension liabilities.

As part of the ESG analysis of this investment, PIC reviewed the community impact, potential environmental disruption, staff health and safety, as well as project accountability. This feeds through into PIC’s in-house ESG risk assessment framework, which provides an ESG issuer score. All of these factors are reviewed on an annual basis. The parks will generate enough electrical capacity to power more than 17,300 households each year

PIC has invested £777m in solar energy to date, covering 60 solar plants. PIC made its first renewable energy investment in 2012 and has made a total investment of over £1.5bn in the sector.

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