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 development costs.
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launching pad for generating innovative energy jobs and boosting local economies while replacing our deteriorating and outdated fossil fuel-oriented grid with new and sustainable energy alternatives.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.”
By Chuck Epstein