Investment firm Aquila Capital has launched a new investment fund targeting assets that are essential to Europe’s energy transition, including hydropower assets.

The German company, which manages energy generation assets in Europe with a capacity of about 2200MW, says that its Energy Transition Infrastructure Fund (ETIF) will target three subsectors of the energy transition: renewable energy generation, energy storage and energy transportation.

“There are numerous developments driving the need for strategic investment in European energy infrastructure projects,” said Susanne Wermter, Head of Investment Management Energy & Infrastructure EMEA at Aquila Capital. “Energy consumption is rising, which is increasingly being met by renewable energy assets such as photovoltaics and wind power rather than fossil fuel and nuclear generation.

“Sufficient transport and storage capacities must be created or amended to meet the challenges of the energy transition. As such, the advancing decentralisation and necessary integration of the energy system offers investors attractive opportunities. This is why we have designed the ETIF to cover the entire value chain in renewable energy supply.”

The new fund will primarily seek investments in onshore and offshore wind power, photovoltaics, hydropower, electricity grids and heat networks, as well as energy storage with an emphasis on greenfield projects. The geographical focus will be on continental Europe and the Nordic countries, with possible additional allocations in Great Britain and in Central and Eastern Europe.

Ten to 15 investments with an average equity ticket of €50 to 75 million are planned, Aquila said