USS has made the investment in exchange for a stake in a pipeline of 4GW of solar photovoltaic (PV) farms

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USS acquires 50% stake in Bruc Energy. (Credit: Jukka Niittymaa from Pixabay.)

UK-based private pension fund Universities Superannuation Scheme (USS) has acquired a 50% stake in Bruc Energy, a renewables-focused investment vehicle in Spain and Portugal.

Bruc Energy was created by Canadian pension fund OPTrust and the Spanish businessman Juan Béjar in 2015.

USS has invested €225m (around £200m) in exchange for the 50% stake in a major pipeline of 4GW of solar photovoltaic (PV) farms.

The transaction is arranged by USS Investment Management, the wholly-owned subsidiary and principal investment manager and advisor to the Scheme.

OPTrust UK private markets group managing director Morgan McCormick said: “We are excited to have USS join Bruc Energy building on our strong existing relationship.

“Their investment will help Bruc become one of the leading renewable energy platforms in Spain. At OPTrust, we believe that investing in renewable energy helps transitions the world to a more sustainable economy.

“In doing so, we can continue to deliver on our mission of paying pensions today and preserving pensions for tomorrow.”

The long days of sunshine and a national target to reach 100% renewable-based generation by 2050 drives the investment in solar energy in Spain, said the company.

The transaction is subject to conditions, including regulatory approval.

Upon closing Bruc Energy will be owned 50% by USS and BROP, a vehicle owned by OPTrust and Béjar.

In January, the company reached an agreement with renewable energy firm Forestalia to acquire its 2GW photovoltaic solar energy plants.

The solar projects included the transaction were planned to be located in the provinces of Zaragoza and Terue in Aragón, Spain.