Smart Pension has pumped £330 million into two renewable energy funds managed by Octopus Energy Generation, in a bold move to accelerate Britain’s net zero push while boosting long-term returns for its 1.5 million savers.
The pension provider’s commitment, part of a broader 15% private markets allocation in its default fund, will see 5% of the fund channelled into Octopus’s flagship Sky and OETF funds – both rated at the highest level for sustainability.
This strategic investment is aimed squarely at turning pension pots into practical climate solutions.
It supports groundbreaking projects like the UK’s first investor-funded ground source heat pump network in South Wales, delivered by British firm Kensa.
The network will serve 114 new-build homes in Parc Eirin, providing affordable renewable heating and hot water – a crucial step as the UK bans gas in new housing.
The investment, Smart says, is about aligning member outcomes with national priorities – high returns, decarbonisation and clean growth.
Octopus, one of Europe’s largest renewables investors, brings a portfolio worth £7 billion across 270 wind, solar and battery sites in 21 countries.
“Our reforms are about unlocking investment to deliver higher returns for savers, drive growth, and create good jobs,” said Chancellor Rachel Reeves. “This means more money in the pockets of working people, our Plan for Change in action. That’s why I’m so excited about Smart Pension’s investment in the UK’s first commercially funded ground source heat pump network in South Wales, delivering returns, growth and jobs.”
Smart’s 1.5 million members will be offered a front-row seat to the impact of their savings, through dedicated carbon reporting and case studies to show how their money is building a cleaner economy.
The Parc Eirin project showcases how pensions can do more than just grow wealth. By backing clean technologies, it sends a clear signal that capital can play a direct role in tackling emissions and driving industrial innovation.
Pension provider goes big into green appeared first on Energy Live News.