The Transport for London (TfL) Pension Fund has signed an agreement with DIF Capital Partners, through DIF Infrastructure IV, to purchase an onshore wind farm in the UK.

Closing of the transaction is subject to customary conditions and approvals, and is expected to take place in the second quarter of 2024.

PKF Francis Clark provided DIF Infrastructure IV with financial advice on the transaction, while Osbourne Clarke provided legal advice and Natural Power gave technical advice.

The TfL pension scheme will acquire the Wadlow wind farm project near Cambridge, which has an installed capacity of 26MW and comprises 13 wind turbines.

The wind farm, which was acquired by DIF Infrastructure IV in 2016, has been operational since September 2012.

The TfL Pension Fund has a net-zero target of 2045 vs the 2016 baseline and a 55 per cent carbon emission reduction target of 2030.

In the pension scheme’s latest Net Zero Carbon Journey Update, published in October 2023, said that the scheme was “ahead of where it needs to be” to deliver its 2030 target.

Commenting on the transaction announcement, DIF Capital Partners partner and head of exits, Andrew Freeman, said: “We are very pleased with the successful exit of this project. Our proactive approach to divestments helps to deliver attractive risk-adjusted returns for our investors, with this sale further demonstrating the strong track record of our investment strategies.

“The success of this investment since 2016 demonstrates how financing the energy transition can deliver strong returns for our investors as well as drive the transition to net zero. DIF will be continuing to look for investment opportunities in the UK renewables sector in the coming years.”

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