"Renewables generation are just part of the broader energy transition and decarbonization story which we believe will generate infrastructure investment opportunities," Mark Hector, senior portfolio manager for infrastructure at the A$155 billion Aware Super, said in emailed comments.
"This platform will help us to diversify our renewables exposure to include stakes in other predominantly grid-scale wind generators," he added.
Diversification is particularly important for renewables – possibly more than any other infrastructure asset class "because of the variability in generation performance across geographies, sites and technology," he said. "Diversification not only helps us derisk our portfolio, but also establishes a platform that can be used for some further growth."
Aware Super is also looking to diversify further from traditional renewables generation "into storage and firming capacity and other ancillary and emerging energy transition opportunities such as our Generate platform in the U.S.," he said, referring to Aware's investment into Generate Capital, a sustainable infrastructure company that in 2021 raised $2 billion from institutional investors including Aware Super, AustralianSuper, AP2 in Sweden, Railways Pensions of the U.K. and The Wellcome Trust.
The super fund has invested A$2 billion into renewable energy and climate solution opportunities across infrastructure, private equity and fixed income. A spokeswoman did not respond to how much of the A$2 billion its Intera investment comprises.
Mr. Hector also said that because of the complex and dynamic nature of the sector, renewables and the energy transition attracts risk that "runs the gamut of policy, merchant forecasting, grid connection, technology advancement, asset useful life risks."
However, this can be circumvented by having the investment team understand the risks and pricing the opportunity well.
"Our team's patience and selective approach to reviewing opportunities means we will continue to identify good financial risk and reward opportunities for our members, which is our key objective," Mr. Hector said.