Powering Australian Renewables (PowAR) completes deal to buy the Australian businesses of Tilt Renewables.

Tilt Renewables is a major developer, owner, and manager of renewable energy generation assets, and as part of the PowAR partnership, Aware Super has significantly increased its stake in PowAR. The investment is an important one, because it gives us exposure to Tilt Renewables’ wind and solar assets and its significant development pipeline, therefore strengthening our commitment to supporting Australia’s transition to a low-carbon economy.

PowAR is a dedicated renewable energy investment vehicle and was set up for exactly this purpose – to facilitate and encourage investment in renewable energy and to help Australia transition to a low-carbon economy. It was already the largest owner of wind and solar generation in Australia, and now has 1,300 MW of operational capacity across nine wind and solar assets, and more than 3,500 MW of capacity in the development pipeline.

Increasing our members’ investment exposure to high quality assets such as Tilt, aims to generate strong returns and continue to grow your super, as there is a strong forecast demand for sustainable energy generation in Australia.

Australia is at a relatively early stage of the journey towards de-carbonisation of power generation, and major players like PowAR are likely to play a significant role in creating the 50 gigawatts (GW) of new low-cost renewable energy we need to replace our coal-fired generation fleet by 2040. PowAR is now the largest player in the sector, and is highly diversified, with wind and solar assets spread across Queensland, New South Wales, Victoria, and South Australia. From an investment perspective PowAR will benefit from the scale, diversification and growth opportunities the Tilt acquisition brings, driving stronger returns.

There’s no longer a question that climate change is a significant risk to the planet – and that the flow-on effects to investment performance and your retirement outcomes are serious risks we need to address. We’re doing this through our focus on renewable energy and low-carbon technology investments, like Tilt. In fact, since the launch of our Climate Change Portfolio Transition Plan in 2020, we’ve invested more than $1 billion in such assets, with around 35% of that in Australia.

Our other investments in the renewables sector over the past year include stakes in Terra-Gen and Perfect Power Solutions, in the US, and in 2019 we invested in the Snowtown 2 Wind Farm in South Australia. And to support our efforts in addressing the Climate Change risks to our investments, we have also fully divested from thermal coal.

One year on report

Aware Super has committed to achieving net zero in our investment portfolio by 2050.

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