Copenhagen Infrastructure Partners (CIP) is seeking to raise $3bn (€2.8bn) for a new fund that will invest in greenfield renewable energy infrastructure in high-growth middle-income markets.

The fund manager said the amount it intends to raise for Growth Markets Fund II (GMF II) is expected to deliver renewable energy infrastructure projects reflecting over $10bn of capital investment.

GMF II will focus on developing and building offshore and onshore wind, solar photovoltaic, energy storage and power-to-x projects in select markets across Asia, Latin America and EMEA. CIP said the fund owns development-stage projects representing potential commitments of more than $5bn.

Christina Grumstrup Sørensen, senior partner and founder of CIP, said: ”To reach net zero, we need to bring affordable, reliable and clean energy to all parts of the world. With a continuous increase in carbon emissions, successful deployment of large-scale renewable energy is particularly important in high-growth, middle-income countries.

“This fund will be deploying significant private capital and therefore ensure renewable projects in countries where it will contribute to growth and job creation and deliver substantial impact in terms of reducing carbon emissions.”

Niels Holst, partner at CIP and co-head of GMF, said: “These middle-income and emerging markets represent not only a mandatory task for the industry – and we believe that they are also very attractive markets for investors seeking exposure to the some of the highest expected growth rates for renewables. They are estimated to account for 25% of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand.”  

Ole Kjems Sørensen, partner at CIP and co-head of GMF, said: “With GMF II we are applying our proven greenfield and industrial investment approach from our predecessor funds to create excess returns while significantly mitigating risks.

“The fund is off to a good start with a large and diversified portfolio of projects reflecting potential equity commitments of more than $5bn – far exceeding the target fund size. We expect the fund to be a global driver in the green and just transition.” 

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