The Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire Local Government Pension Scheme (LGPS) funds have announced plans to invest £230m in local solar assets in the Southwest region.

The £230m investment, made through the Wessex Gardens partnership, aims to deliver climate-friendly investments, at scale, and is designed to align with the funds’ strong commitments to tackling climate change.

It forms part of the largest operational solar deal ever transacted in the UK, with the six funds acquiring a stake in the Toucan Energy portfolio.

Wessex Gardens LP will initially hold a stake in the portfolio of solar assets, which are distributed across the UK, with the portfolio then restructured over time so the partnership is holding predominantly Southwest assets consistent with the funds’ ambitions around place-based/local investing.

The end state portfolio held by the partner funds will see around £230m invested in 17 assets with a generating capacity of approximately 196MW, equivalent to powering nearly 70,000 homes.

Commenting on the investment, Avon Pension Fund head, Nick Dixon, stated: "We are pleased to see the close of the first investment as part of this ground-breaking collaboration.

"We are clear that climate change is an existential threat, and we want to drive real change through how we invest. This partnership allows us to make a significant contribution to achieving our climate objectives.

"It’s been a really positive experience working with other LGPS Funds and the team at Schroders Greencoat to achieve this investment.”

Adding to this, Wiltshire Pension Fund spokesperson, Jenny Devine, stated: “We're delighted with this cornerstone investment in Wessex Gardens.

"Our collaboration with other LGPS funds has enabled us to invest in solar at scale across the Southwest, earning strong returns for our members while also supporting our goal of net zero by 2050."

---