A fifth of the new renewable energy projects, with about 4GW capacity, will be located in non-OECD emerging market nations, said Macquarie
Macquarie revealed its plans to develop a pipeline of 20GW of new renewable energy projects in the next five years in different parts of the world.
The Australian investment banking firm will be developing the renewable energy facilities through its Green Investment Group (GIG) unit. Founded in 2012, GIG is engaged in making principal investments across green infrastructure, project delivery, and the management of portfolio assets, and associated services.
Macquarie’s plans for the 20GW portfolio were disclosed by the company’s CEO Shemara Wikramanayake during the UN Climate Action Summit in New York.
The company said that nearly a fifth of the renewable energy projects it plans are likely to be located in non-OECD emerging market nations where climate finance flows have been traditionally weaker.
Macquarie said that several of the projects are expected to be supported by power purchase agreements to be made by GIG with corporate clients.
The Australian group said that the move follows the raising of $A1bn (£550m) of share capital for investment via an institutional placement last month after an active period of investment across renewables projects and others.
Macquarie CEO comments on the company’s approach towards renewables
Wikramanayake said: “Over the last decade we have played a leading role in facilitating the shift towards renewables, with a particular focus on trying to address the various challenges that remain to full transition, including the need for a stronger pipeline of projects and integrating these with energy grids.
“We are increasingly broadening our focus by seeking new solutions to emissions reduction across agriculture, waste and real estate and working to ensure our infrastructure investments are more climate resilient.”
Last month, GIC signed an agreement to acquire 40% stake in the 714MW East Anglia One offshore wind farm from ScottishPower Renewables (UK), a subsidiary company of Iberdrola. To be located off the UK’s Suffolk coast, the East Anglia One offshore wind farm can power more than 600,000 homes annually.
In June 2019, the Macquarie unit announced the completion of the installation of South Korea’s first floating LiDAR. The LiDAR’s installation is said to be one of the first key steps in the development of the company’s first offshore wind farm in Korea.