Investment firm APG commits €560 million to Octopus Australia's renewable energy initiative
In a significant move towards a sustainable future, Dutch pension services provider APG and UK-based defined contribution pension scheme Smart Pension have announced substantial investments in Octopus Energy Generation.
APG, committing over A$1 billion (€560 million / US$640 million), will support solar, wind, and battery energy storage projects in Australia through Octopus Australia’s OASIS renewables platform [1][2]. Simultaneously, Smart Pension has invested about £330 million (€382 million / $440 million) in two UK-based funds managed by Octopus Energy Generation, financing clean energy projects such as the UK’s first investor-funded ground source heat pump network [1][3].
Combined, these investments total approximately A$1 billion plus £330 million, which is roughly €940 million or about US$1.1 billion across Australia and the UK. Other investors in Octopus Australia's renewables platform include Australian pension funds Rest and Hostplus, various international pension funds, private banks, and wealth managers. However, precise aggregate figures for these additional investors were not specified in the sources [1].
Octopus Energy, part of the UK-based Octopus Group that includes institutional asset manager Octopus Capital, has attracted significant investments from various global investors, with valuations rising to $9 billion in early 2024 [5].
The investment by APG will be used to finance wind farms through Octopus's £1.5bn Sky fund, as well as other projects, including ground-source heat pumps, through the Octopus Energy Transition fund. Octopus Australia plans to use the new funding from APG to develop its Blind Creek 300-megawatt solar farm and a 500 megawatt-hour battery project, with construction starting in October [4].
Meanwhile, Smart Pension's investment reinforces its commitment to long-term sustainable investment. The investment makes up 5% of Smart Pension's default fund and helps the UK to accelerate the transition to a net-zero economy. The UK's Smart Pension has invested £330m (€382m) in two funds managed by Octopus Energy Generation [6].
Renewable energy accounted for 40% of Australia’s electricity generation in 2024, with wind, rooftop solar, and medium and large-scale solar being the largest contributors [7]. As Australia moves away from its reliance on fossil fuels, it needs approximately £250bn to fund its energy projects over the next 10 years [8].
Octopus Australia has an operating and development portfolio of over A$11bn across wind, solar, and battery storage. The asset management arm of APG chose to partner with Octopus Australia due to its integrated development model and ability to progress shared impact, climate, and long-term value-creation goals [1].
Smart Pension serves over 1.5 million members and more than 90,000 employers. Launched in 2015, Smart Pension now has more than £7bn in assets under management [9].
These investments are part of a 15% allocation commitment by Smart Pension to private markets within its default fund. The Octopus investments are not related to the previous investment by APG in Octopus Australia [1].
Australia added 5.2 gigawatts of generating capacity in 2024, a decline from the 5.9GW added in 2023. Despite this, 59 large-scale generation projects were under construction at the end of the year [10].
In conclusion, the confirmed total renewable energy investment by APG and Smart Pension in Octopus Energy Generation funds, spanning Australia and the UK, is roughly over €900 million (A$1 billion + £330 million), with other investors' contributions included but not quantified explicitly [1][2][3]. This investment marks a significant step towards a more sustainable future for both countries.
References: 1. Octopus Energy Group 2. APG Group N.V. 3. Smart Pension 4. Octopus Australia 5. Octopus Energy 6. Octopus Energy Generation 7. Clean Energy Council 8. Australian Clean Energy Finance Corporation 9. Smart Pension 10. Australian Energy Market Operator
- The investment by APG, valued at over A$1 billion, will support various energy transition projects, including wind farms and solar farms, through Octopus Energy's Blended Finance model in Australia.
- Simultaneously, Smart Pension, investing £330 million, is funding clean energy projects such as ground source heat pump networks in the UK, as part of its commitment to long-term sustainable investment and environmental-science.
- Octopus Energy Group, through the investments of APG, Smart Pension, and other global investors, is making significant strides towards the energy transition, with a portfolio exceeding A$11 billion across Australia.
- These strategic investments in renewable energy projects, totaling approximately €940 million, are designed to help both Australia and the UK transition into a more sustainable future, addressing the urgent challenge of climate-change while leveraging technology and finance to create lasting value.
