INVL Renewable Energy Fund I
The objective of INVL Renewable Energy Fund I (hereinafter – REFI) is to create added value for investors by investing in renewable energy and related infrastructure within the borders of the European Union.
Those who invest in the REFI Sub-Fund contribute to the transformation of the energy sector – the transition from fossil fuels as the primary source of electricity generation to renewable sources such as solar, wind, etc. The Sub-Fund allows investors to achieve their own ESG goals or realize their own sustainability initiatives for reducing CO2 emissions, creating jobs, and stimulating economic growth.
The investment period is 4 years. Sale of the portfolio will take place within 1-3 years after the end of the investment period.
Standardized portfolio criteria:
Power Purchase Agreements (PPAs)
Contracts for Difference (CfDs)
Standardized production technology
Advantages of the portfolio:
Size that is attractive to large institutional investors
Predictable long-term cash flow
Economies of scale thanks to optimized management costs
Renewable energy
Each of us can contribute to environmentally friendly change. And when responsible consumption, energy saving and waste sorting become firm habits in a family, those environmental traditions get passed on to future generations. Investing in renewable energy is an even bigger and firmer step towards a clean and sustainable future. By investing in renewable energy, we’re using the capital we hold to advance the good of society and a greener environment even as the money that’s invested generates a competitive return.
In December 2019, the European Union announced the “Green Deal”, which seeks by 2050 to turn the EU into the first continent that is climate neutral and functions as a circular economy. Amidst the changed geopolitical situation, the EU and its members states are taking a variety of measures to further encourage investments in renewable energy and thus reduce reliance on imported fossil fuels. Given the important objectives sought and the extremely large investment needed, the EU is prioritising funding for green investments in its budget and seeking to mobilise at least €1 trillion for this purpose. The fund's investments will contribute to the EU's common goals.
At present, investments are above all in solar and wind farms, which governments themselves are promoting. In the near future, we’ll see investments in energy storage and in hybrid farms that combine both wind and solar systems as well as energy storage.
In terms of renewable energy projects, Poland is the most developed market in the Central and Eastern European region. This reflects the range of specializations among companies developing projects, electricity supply, project financing opportunities, and so on.
The fund made its first acquisitions in Poland in September 2021. Since then, it has formed a 33 MW portfolio of solar generation projects with approved grid connection conditions.
At the end of 2021, the Romanian government created a legal framework for long-term bilateral contracts to buy and sell electricity (i.e., Power Purchase Agreements or PPAs) without the need for third-party intermediation. Romania has 30% more hours of sunlight suitable for electricity generation than Poland does.
The fund made its first acquisitions in Romania in March 2022. Since then, it has formed a 357 MW portfolio of solar generation projects with approved grid connection conditions.
The fund has an attractive projected net return (net IRR) of 11%. That can help hedge against uncertainty, low-interest rates, rising inflation, and other adverse economic scenarios.
To reduce investment risk, investments are made in EU markets where governments encourage the development of renewable electricity by promoting stable and predictable returns for investors, where long-term power purchase agreements are gaining in popularity, and where projects offer possibilities for risk diversification.
Seeking to attract more green investments, EU countries are holding or planning to hold auctions of quotas for planned electricity generation, thus providing independent investors with investment return protection for a period of 15-20 years.
Financial information and statements
Public Bond Issue of 2023
Sustainability
The INVL Renewable Energy Fund I’s sustainable investment objectives essentially involve the environmental goals of mitigating climate change and fully complying with the Do-No-Significant-Harm (DNSH) principle as defined in the EU Taxonomy Regulation.
In investing in renewable energy, we strive to minimize any impact on the environment and strictly adhere to environmental standards. To that end, we give importance to reducing not just CO2 emissions but also the overall environmental impact.
In our activities, we indirectly apply the Principles of Responsible Investment (PRI), an investment philosophy guided by key environmental, social and governance (ESG) principles.
Team
The REFI management team has extensive experience in managing companies in the energy sector, in project development, and in financial management and transactions. In their careers, the Sub-Fund’s main partners have completed more than €300 million of energy-related investments and played roles in over €250 million of other transactions.
In addition to its partners’ experience, the Sub-Fund’s access to the expertise and accumulated know-how of INVL Asset Management enables efficient management of its resources. Operating as it does in foreign markets, the Sub-Fund uses the services of local partners (legal, financial, accounting, project development and management, construction) in the different markets.
Team
Liudas Liutkevičius
Linas Tomkevičius
Sigita Budrienė
Giedrius Rupeika
Vitalija Rogovska
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