Border to Coast Pensions Partnership, Leeds, England, committed £90 million ($108 million) to solar energy fund NextPower U.K. ESG, managed by renewable investment specialist NextEnergy Capital, a spokeswoman confirmed.
NPUK ESG is a private solar fund focused on investing in unsubsidized new-build solar plants in the U.K.
The pool's first commitment to the fund was made from Border to Coast's Climate Opportunities subfund, which invests in private assets focused on the energy transition.
"The strategy will seek to deliver an attractive risk adjusted return through the delivery of new PV solar assets in the U.K. and was deemed complementary to our overall portfolio construction," the spokeswoman said in an email.
The pool is responsible for £38.3 billion in assets for local authority pension funds. Total member fund assets are £60 billion.
NextEnergy Capital said in a news release that the fund is classified as Article 9 under the European Union's Sustainable Finance Disclosure Regulation.
Also, Brunel Pension Partnership, Bristol, England, invested an undisclosed amount in the fund, a spokeswoman confirmed.
"Our renewables specific program was under exposed to U.K. and we felt Next Energy was a good fit to increase GBP U.K. exposure in this specific portfolio as well as supporting U.K. renewables," she said.