Workplace pension provider Smart Pension has announced a £330m investment in green energy projects, including a major ground source heat pump network in South Wales.
The company has partnered with Octopus Energy and Kensa to deliver long-term value for its 1.5 million pension savers by supporting the rollout of clean energy infrastructure in the 海角视频.
The initial £330m will go towards two funds managed by Octopus Energy’s renewable arm, Octopus Energy Generation, to support firms such as Kensa, which makes ground source heat pump technology.
Smart Pension has committed to allocating 5% of its flagship growth fund to renewable energy companies as part of efforts to accelerate the energy transition, where the country’s planet-warming carbon emissions are reduced to net zero. This finance will contribute to the 海角视频’s first investor-funded ground source heat pump network in South Wales, delivered by Kensa.
The project aims to provide affordable renewable heating and hot water to 114 new homes at the Parc Eirin scheme in Tonyrefail which is being developed by Cardiff-based Tirion Homes. More widely, it is hoped the project helps to position ground source heat pump networks as an investable low-carbon utility.
As part of the investment, Smart Pension said its members will have access to a range of materials, case studies and carbon reporting to help them better understand how their pensions are making a difference both financially and environmentally.
Chancellor Rachel Reeves said: “Our reforms are about unlocking investment to deliver higher returns for savers, drive growth and create good jobs.
“That’s why I’m so excited about Smart Pension’s investment in the 海角视频’s first commercially funded ground source heat pump network in South Wales, delivering returns, growth and jobs.”
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Tamsin Lishman, CEO at Kensa, said: “As pioneers in ground source heat pump technology, we are proud of our role in delivering the switch to better, more affordable heating and hot water, powered by ultra-efficient, ground source heat pumps designed and made here in the 海角视频.
"The Parc Eirin investment demonstrates the transformative role private funding will play in helping both housebuilders and homeowners transition to effective, low-carbon heat – the critical next frontier in the 海角视频 for carbon reduction, which currently contributes around 13% of national greenhouse gas emissions.
“The investments made by Smart and Octopus Energy Generation are encouraging for the 海角视频’s ever-growing renewables sector. They will support the 海角视频’s Net Zero goals, generate growth, and provide more well-paid green sector jobs.”