Danish PKA has invested DKK 2bn (€268m) in American solar power plants, its first direct investment in solar energy, the pension scheme said.

The investment gives PKA a 49 per cent ownership in Canadian Solar subsidiary Recurrent Energy, which owns the two solar power plants Garland and Tranquility.

The plants, both in California, will deliver green electricity to more than 100,000 American homes, the fund announced in a statement.

CEO Peter Damgaard Jensen said: “It is very satisfying to be part of sending green electricity to several thousand households while yielding good returns for our members. We have since 2011 invested in six offshore wind farms which historically has yielded double-digit annual returns for our members.”

The investment in Garland and Tranquility is PKA’s first direct investment in solar power. According to the fund, it is an important step forward to reach its green investments goal, investing 10 per cent of its assets, up to DKK 30bn (€4bn), in climate projects by 2020.

The power plants have a collected capacity of 410 MW and covers an area equivalent to almost 5500 football fields in two different locations between Los Angeles and San Francisco.

According to Jensen, the US is one of the most sought after countries for renewable energy investments, especially after the governor of California signed a new law which means that 100 per cent of the state’s electricity in 2045 will come from CO2-neutral energy sources.

That makes it an exciting market for PKA to enter, Jensen said. “At KA we are dedicated to making a positive change for the climate while we at the same time deliver good pensions for our members.

“We are therefore very pleased to be able to cement our climate strategy in another green investment where we can combine good business for our members with common sense for our climate.”

The remaining 51 per cent is owned by Southern Power, a subsidiary of Southern Company, one of the biggest energy companies in the world.

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