The $171.4 billion Ontario Teachers’ Pension Plan has
announced it is investing $2 billion in a new partnership with Anbaric, a major
developer of clean energy transmission and microgrid projects, to create a new
development company, Anbaric Development Partners.
Anbaric Development Partners will build clean energy
infrastructure projects in North America and will upgrade aging transmission
networks. The existing Anbaric management team will lead the new company. As
part of the deal, the Ontario Teachers’ is committed to funding $2 billion in
The Ontario Plan is
Canada's largest single-profession pension plan and made the infrastructure partnership
as part of its diversified global portfolio, 80% of which is managed in-house.
The Plan said it has achieved a long-term average rate of return of 10.3% since
inception in 1990. Ontario Teachers’ is an independent organization
headquartered in Toronto. To help manage its global portfolio, the Ontario Plan
has offices in London and Hong Kong.
Anbaric Development Partners, Wakefield, Mass., has built
environmentally- friendly high-voltage, direct current (HVDC) transmission
projects and developed a series of large microgrids, known as distributed
energy systems, or non-transmission alternatives.
Andrew Claerhout, senior managing director for infrastructure
and natural resources at Ontario Teachers’, said,“We are seeing so much
innovation right now in the clean energy sector. This investment fits our goal
of finding new ways to diversify through opportunities that have significant,
long-term revenue stream potential. With our thoughtful and reputable partners
at Anbaric, we will strategically invest earlier in the asset lifecycle,
seeking attractive returns for our members with the added benefit of
participating in projects that support the transition to a low-carbon economy.”
The founder and CEO of Anbaric, Edward N. Krapels, said the
new partnership “creates an attractive launching pad for generating innovative
energy jobs and boosting local economies while replacing our deteriorating and
outdated fossil fuel-oriented grid with new and sustainable energy
alternatives. This includes sophisticated HVDC transmission technology and microgrid
projects that will bring renewables online with greater efficiency.”