The Wales Pension Partnership (WPP) will invest £68m in onshore wind farms being developed by Welsh renewable energy business Bute Energy.
Bute Energy is developing wind projects that will generate clean, green energy, supporting the Welsh Government’s target for electricity to be 100% renewable by 2035.
Councillor Ted Palmer, Chair of the Wales Pension Partnership Joint Governance Committee, said: “We are at a critical time for society as we attempt to address climate change and the cost-of-living crisis, while creating green, skilled jobs.
“This investment in Bute Energy projects means that our members are contributing to addressing all of these issues while also retaining the wealth from renewable energy in Wales.
“This will deliver ethical investments and will contribute to the wellbeing of future generations in Wales – as well as meeting Welsh Government targets on local and shared ownership of renewable energy projects.”
Bute Energy’s energy parks and electricity grid projects are expected to attract up to £3bn of direct investment into Wales, delivering a material boost for economic growth and employment for the Welsh economy.
The projects will generate jobs during their construction phase and skilled long-term jobs during their operational phase, at locations across Wales.
Once operational, the Energy Parks are expected to deliver approximately £800m of Community Benefit Funding to the communities living closest to the projects.
Oliver Millican, Chairman of the Bute Energy Group, said: “We’re delighted to welcome this public sector investment in renewable energy in Wales.
“Public sector workers across the country are investing in projects that will generate clean, green energy that homes, businesses, schools and hospitals will need in the future.
“They are not only investing in their future, but also the health and wellbeing of future generations in Wales.”
WPP has been advised by independent clean energy asset manager Capital Dynamics and by the law firms TLT and Burges Salmon.
Copenhagen Infrastructure Partners (CIP), one of Europe’s biggest renewable energy investors, has previously announced that it is investing in the development of Bute Energy’s projects.
Through this transaction, WPP will now become a joint investor alongside CIP in Bute Energy’s Energy Parks.
