Low Carbon gains $1.4bn from CVC DIF to drive renewable energy growth

Renewable energy company Low Carbon has gained a significant investment from CVC DIF, aimed at driving the next stage of the company’s growth.

The CVC DIF investment, together with additional funding from current shareholder MassMutual, as well as the refinancing of existing project finance debt and a new holdco facility, brings the company's total committed capital to around £1.1bn ($1.45bn).

Low Carbon said that the new investment from CVC DIF will support the delivery of several gigawatts of renewable energy.

This capital injection is intended to enable Low Carbon to support its transition into a diversified independent power producer, contributing to the ongoing energy transition in the UK and Europe.

CVC DIF’s primary equity investment, which includes both common and preferred shares, will result in a majority controlling stake in Low Carbon.

According to Low Carbon, the UK government’s Clean Power 2030 plan, announced last year, which includes doubling onshore wind capacity and tripling solar photovoltaic (PV), requires £40bn of annual investment.

In parallel, the EU has set a new renewable energy target of 42.5%.

The partnership between CVC DIF, its investors, and Low Carbon is expected to position the company to play a central role in delivering clean and affordable electricity across these regions.

Low Carbon currently manages a 16GW pipeline and has 1GW of highly contracted operational and in-construction assets.

The latest capital is said to support growth in key markets such as the UK, Germany, and Poland, where the company plans to bring a 3GW portfolio of operational utility-scale solar, battery storage, onshore wind, and colocated assets online in the coming years.

Low Carbon said that MassMutual, which formed a strategic collaboration with the company in 2021, remains a significant shareholder and will continue supporting the company’s growth with further investment.

MassMutual will collaborate with CVC DIF to expedite the development of Low Carbon’s renewables pipeline.

The CVC DIF investment will be made through DIF Infrastructure VIII and is expected to close this year, contingent on customary closing conditions.

Evercore served as the adviser to Low Carbon on the transaction.

Low Carbon chief executive and founder Roy Bedlow said: “I would like to thank CVC DIF and their investors for the confidence they have placed in Low Carbon and our ability to develop, build and operate high-quality renewable assets in the UK and Europe.

“In addition, MassMutual’s continued investment in Low Carbon underlines our shared ambition of delivering long-term value across the full investment cycle of renewables that will help accelerate our goal to deploy renewable energy at scale to help tackle climate change.”

"Low Carbon gains $1.4bn from CVC DIF to drive renewable energy growth" was originally created and published by Power Technology, a GlobalData owned brand.

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