There is a strong preference for diversification across renewable energy assets, according to research from AlphaReal, which found that the majority (85 per cent) of UK pension funds and insurers look for exposure to multiple technologies.

In contrast, 15 per cent said they prefer to invest in a single renewable energy technology.

Of those surveyed, nearly nine in ten survey respondents plan to invest more into onshore wind in the next five years.

In particular, 30 per cent said they expect to make significant increases, while 57 per cent are expecting to make slight increases, 12 per cent say they will keep allocations to onshore wind the same, and 1 per cent will make slight decreases.

Onshore wind is already the most popular renewable energy choice for UK pension funds and insurers, with just over two thirds (67 per cent) stating their funds hold allocations.

Battery energy storage systems (BESS), in which 63 per cent of UK pension funds and insurers responding to the survey currently invest, are also expected to see significant increases from more than half (57 per cent) of investors in the next five years, while a further quarter of respondents are set to make slight increases.

In addition to this, over half (54 per cent) of UK pension funds and insurers said they invest in ground-mount solar, although further increases are expected, with 56 per cent expecting to increase allocations "significantly" in the next five years.

Meanwhile, 15 per cent are set to increase slightly, and 14 per cent will keep allocations the same.

Commenting on the findings, AlphaReal renewable infrastructure investment director, Raza Ali, said: “These findings support our investment approach at AlphaReal where we encourage diversification across renewable infrastructure technologies.

“Experience in the sector has demonstrated there is a complimentary energy generation profile between ground-mount solar and onshore wind, and adding BESS could provide further diversification and derisking benefits whilst continuing to provide stable returns to investors.

“It is encouraging to see that the majority of those surveyed see the value of a diversified approach and plan to increase their current renewables allocations.”

Adding to this, AlphaReal CEO and head of sustainability, Ed Palmer, said: “It makes sense that investors choose to diversify across different renewable energy technologies to get the most out of the range of opportunities available.”

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