Copenhagen Infrastructure Partners (CIP), a Danish investor, aims to raise €12 billion (£10.3 billion) for its renewable energy fund, making it one of the largest funds dedicated to transitioning away from fossil fuels. The first close of €5.6 billion has already been reached, and CIP expects to more than double that amount within the next year. This substantial funding boost comes at a crucial time for the renewable power sector, which requires significant capital to meet climate goals while grappling with rising interest rates.

CIP's fund, named FloWatt, is set to become the world's largest tidal farm, featuring the highest number of turbines and the largest capacity. It is scheduled to begin operations in 2026 and will provide electricity to approximately 20,000 people for two decades. The project is a collaboration between Qair, HydroQuest, and Constructions Mécaniques de Normandie (CMN).

The fund's investments will cover offshore wind, onshore wind, solar, battery storage, and transmission technologies. The aim is to achieve annual returns of 10% to 12%. CIP's successful approach involves developing large-scale renewable power projects from scratch and then selling off assets while maintaining a stake to benefit from electricity sales.

CIP's achievement in raising funds demonstrates the attractiveness of the renewable energy market and the potential for growth. The investment aligns with governments' efforts to reduce dependence on hydrocarbons and supports Europe's drive for more indigenous and cost-competitive electricity production. The success of FloWatt underscores the importance of consistency in the renewable energy sector, highlighting the need for long-term commitment and early engagement in high-quality projects.

The first close of the Copenhagen Infrastructure V (CI V) fund, with €5.6 billion in capital commitments, marks a significant milestone for CIP. This fifth flagship fund is on track to reach its target size of €12 billion, positioning it as the world's largest greenfield renewable energy fund. Institutional investors from various regions have participated in the close, reflecting their trust in CIP's energy infrastructure investments. CI V will focus on greenfield projects in renewable energy, such as offshore wind, energy storage, onshore wind, and solar, across North America, Western Europe, and the Asia-Pacific region.

With ownership of a substantial portfolio of renewable energy projects and a robust investment pipeline, CI V has the potential to accelerate the global energy transition while delivering strong returns. The fund aims to add 20 GW of clean energy capacity to the grid, equivalent to powering more than 10 million households with renewable energy and avoiding 15 million metric tons of CO2 emissions annually.

CIP's commitment to renewable energy investment reflects the favorable market conditions, the growing demand for new infrastructure, and the need to meet ambitious climate goals. With a solid track record, a dedicated team, and extensive capabilities across renewable technologies and global markets, CIP is well-positioned to seize attractive market opportunities and contribute to a sustainable energy future.