Danish fund manager, Copenhagen Infrastructure Partners (CIP) reached a first close of $1.7 billion from investors that include PensionDanmark and AP Pension in CI IV, which looks to become the largest global renewable energy infrastructure fund — with a target size of $6.2 billion, according to a release.
The fund looks to invest $11 billion to $16 billion in greenfield renewable energy projects across North America, Western Europe, Asia and Australia.
“The market timing is favorable for greenfield renewable infrastructure investments,” said Jakob Baruël Poulsen, managing partner at CIP.
CIP’s investment strategy “will diversify investments across technologies such as contracted offshore wind, onshore wind, solar PV, transmission, storage, waste-to-energy and biomass assets in low risk OECD countries in Western Europe, North America and developed Asia Pacific.”
CIP funds have made 20 investments in large-scale energy infrastructure assets totaling almost 8 GW in capacity across the U.S., the UK, Germany, Spain, and Taiwan. More than 15 greenfield energy infrastructure projects are in process to reach final investment decision and start of construction in the coming few years.
In 2018, CIP started construction on the Misae and Sage solar power projects, located in Texas and Utah and sized 240 MW and 58 MW, respectively.
The Sage project in Rich County, Utah employs First Solar modules on a horizontal single axis tracker and was acquired by CIP from a local developer in April 2017 as part of a larger portfolio. Sage started operations in September 2019. The project was tax equity financed by Wells Fargo. According to the investor, “In order to connect to the offtaker’s transmission grid, the project financed grid up-grade costs of $10 million, which increased robustness of the transmission infrastructure in the area.”
CIP was founded by former Orsted executives.