FRANKFURT (Reuters) - Allianz and Bank of America are investing in two onshore wind parks developed by French utility EDF, the German insurer said on Monday, marking the group’s first wind investment in the United States.
Insurers and infrastructure investors have ramped up investments into wind power in recent years, eager for the guaranteed returns these assets offer in an otherwise low interest-rate environment.
“We believe the financial services sector is in a unique position to help and provide the much needed capital and financing to accelerate the low carbon economy,” said David Jones, head of renewables at Allianz Capital Partners.
Allianz said the investment, whose level was not disclosed, raised its total spending on wind and solar assets to about 2.9 billion euros ($3.2 billion).
A source familiar with the matter said that the combined investment volume by Allianz and Bank of America was more than 600 million euros, with Allianz’s share 200 million euros.
The two wind parks, Roosevelt and Milo, are located in New Mexico and have a combined capacity of about 300 megawatts, using a total of 150 wind turbines to power about 170,000 households, Allianz added.
Following the investment, Allianz’s renewable portfolio includes 60 wind farms and seven solar parks, located in France, Germany, Italy, Sweden, Austria, Finland and the United States.
Reporting by Alexander Huebner; Writing by Christoph Steitz; Editing by Georgina Prodhan