Three Danish pension providers have committed more than DKK 2bn to a Nordic renewable energy infrastructure fund, as part of efforts to strengthen regional energy security while delivering long-term returns for members.

AP Pension, Lægernes Pension & Bank and PenSam are each investing SEK 1.1bn in SEB Nordic Energy, a private equity fund focused on hydropower, wind and battery storage assets across the Nordic region.

The investment is intended to support a more resilient and stable electricity system while contributing to the green transition by increasing renewable energy production.

AP Pension investment director, Pernille Jessen, said the move reflected the "growing link" between sustainability and energy security.

“The green transition is increasingly about energy security and resilience. With the investment in SEB Nordic Energy, we are helping to support a stronger Nordic energy system that can deliver stable power in a time of increasing demand and greater geopolitical uncertainty,” she added.

SEB Nordic Energy focuses on acquiring and upgrading existing small and medium-sized renewable energy assets, rather than developing new infrastructure.

The strategy is designed to increase energy output while maintaining a lower climate footprint compared with new construction projects.

Electricity demand across the Nordic region is expected to rise significantly in the coming years, driven by the electrification of industry and transport, as well as the growth of energy-intensive sectors.

At the same time, higher levels of intermittent renewable generation are increasing the need for storage and grid balancing solutions.

Lægernes Pension & Bank investment director, Peter Possing Andersen, highlighted the role of such investments in supporting both financial and societal resilience.

“Stable and independent energy supply is today a cornerstone of security policy.

"Investments in a robust energy system with risk diversification and Nordic roots are not only financially attractive - they also strengthen society's resilience in uncertain times.

"The fact that it is also green energy emphasises that security and climate can easily go hand in hand,” he added.

Hydropower assets within the fund are expected to provide a stabilising complement to variable renewable sources, while battery storage and modernised wind facilities aim to enhance flexibility and improve grid efficiency.

The three pension funds are investing in parallel and are expected to become among the largest investors in the fund, which already holds a significant portfolio of Nordic renewable assets.

With the new commitments, the portfolio is expected to double in size over the coming years.

PenSam head of private capital and real assets, Jeppe Starup, argued that the investment offered an attractive balance between risk and return.

“With the investment in SEB Nordic Energy, Danish pension funds can contribute to strengthening European energy security.

"The fund has an attractive risk profile, and with the prospect of stable returns, the investment supports PenSam's ambition to create solid, long-term returns for our members,” he added.

SEB Nordic Energy is classified as an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation, with a focus on sustainable investments.

It operates with an investment horizon of up to 15 years.

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