How is it that the "Wales Pension Partnership (WPP), a collaboration of local government pension schemes in Wales “will invest c. £70m” in Bute Energy's Twyn Hywel Energy Park?
"Process could do with a little more scrutiny" by Non Davies
The following is an important letter to the editor of Wales’ Western Mail by Non Davies regarding the Wales Pension Partnership’s seemingly cozy relation with Bute Energy.
Photo of Myndd Eglwysilan & Eglwysilan Common used by the Western Mail.
In its Collaborative Benefits Report (DNS Application Reference 3272053 APP 013 para 5.5), Bute Energy in respect of its proposed turbine site at Twyn Hywel (straddling the border between Caerphilly and Rhondda Cynon Tȃf) informs the reader that the Wales Pension Partnership (WPP), a collaboration of local government pension schemes in Wales “will invest c. £70m” in the Twyn Hywel proposed development and 15 other of its proposed sites across Wales. The statement continues, “with an option for the WPP Members to invest further – investing a total of up to £200m”. Bute Energy appears to claim that this investment satisfies the “shared ownership” element favoured by Welsh Government in these developments.
As a lay person I’m struggling to understand this and its potential implications. Does this mean that the pension pots of local government staff are being invested in a company that has no proven track record in this industry and has not yet built a single turbine?
On another level, my understanding is that the local authorities are statutory consultees in the Development of National Significance application process. Therefore, hypothetically, a local authority may be asked to comment on a development in its area in which it has made a significant financial investment. Does this not raise the issue of vested and conflicting interests? How can those individuals and communities most affected by the proposed sites – consisting of turbines of up to 250m in height within close proximity of homes, with known adverse impacts – trust in the objectivity and integrity of the process? Who indeed represents them? Surely justice not only has to be done but also seen to be done?
I look forward to being suitably reassured in the coming days by the Wales Pension Partnership, relevant Ministers and members of the Welsh Government Climate Change Committee that this is not a factor worthy of more scrutiny.
– Non Davies Llangernyw, Conwy
Thank you Non for bringing these critical issues to wider attention.
The following screenshot of page 17 from Bute Energy’s Collaborative Benefits Report prepared for their proposed Twyn Hywel development with 14 industrial wind turbines “up to” 200m in height, sets forth the terms of investments by the Wales Pension Partnership (WPP) in novice “renewable developer” Bute Energy.
EDIT: An astute learned friend has drawn attention to a particularly critical sentence in the section highlighted in the screenshot above, with the comment:
“…this wording is so arrogant the implication is very much Ministers in pockets.”
Given that Bute Energy have been marketing themselves as allegedly “green energy developers” over the last few years when they have yet to construct a single wind turbine, it is noteworthy in the foregoing screenshot that it is stated Bute’s proposed Twyn Hywel Energy Park “is the first to come forward.”
What exactly is the Wales Pension Partnership through which Bute states it has demonstrated “shared ownership”?
The Wales Pension Partnership (WPP) was established in 2017. The WPP is a collaboration of the eight LGPS funds (Constituent Authorities) covering the whole of Wales and is one of eight national Local Government Pension pools.
We have a long, successful history of collaboration, including examples that pre-date the Government’s pooling initiative. We are proud of our unique identity as a Pool – our Constituent Authorities represent and span the entirety of Wales. Being democratically accountable means we provide the best of strong public sector governance and transparency.
Our operating model is designed to be flexible and deliver value for money. We appointed an external Operator and make use of external advisers to bring best of breed expertise to support the running of the Pool. The Operator is Link Fund Solutions and they have partnered with Russell Investments to manage the investments and assist in the reduction of investment management costs for all the Constituent Authorities.
We have a clear vision and are in control of the pace we take to ensure we meet our goals.
The Wales Pension Partnership Joint Governance Committee (JGC) oversees the pooling of the investments of the eight Local Government Pension Scheme funds in Wales. The JGC meets a minimum of 4 times a year at one of the constituent authority offices and each meeting is webcasted. You can view the webcast as well as the agenda and minutes of each meeting on the Host Authority’s website. The JGC comprises one elected member from each Constituent Authority and a co-opted (non-voting) scheme member representative, these are currently:
The Wales Pension Partnership (‘WPP’), the pooling entity for the eight Welsh LGPS Funds, has launched a Sustainable Global Active Equity sub-fund on its existing ACS platform. The launch further enhances the choice available to the WPP’s constituent authorities and aligns with their evolving sustainability objectives.
The new sub-fund has launched with £1.2bn, with all eight Welsh Funds participating and will see Russell Investments manage a diversified multi-manager sustainable active equity solution built to the WPP’s bespoke requirements. The solution includes five highly rated specialists (Sparinvest, Mirova, Neuberger Berman, Wellington and Artemis) identified and assessed by Russell Investments’ proprietary research framework to ensure suitability and inclusion of truly sustainable offerings.
The solution also offers the flexibility to evolve as the WPP’s requirements change, or as the sustainable landscape continues to develop, utilising Russell Investments’ Enhanced Portfolio Implementation capabilities – an infrastructure enabling customised and efficient changes to the sub-fund with a centralised portfolio management process.
Link Fund Solutions, which was appointed by the WPP as its FCA authorised Operator in 2018, is responsible for the creation and operation of the new sub-fund. Russell Investments was first appointed as WPP’s investment management solutions provider in 2018.
Commenting on the launch, Cllr Chris Weaver, Chair of the Joint Governance Committee of the Wales Pension Partnership, said:
“WPP’s long-term ambition is to demonstrate leadership on sustainability and responsible investing practices for and on behalf of the Constituent Authorities. This new sub-fund supports these ambitions in delivering both financial and broader sustainability benefits to the Authorities, and their underlying members.
Jim Leggate,Head of EMEA Sales and Clients at Russell Investments, added:
“We are delighted to have supported the Wales Pension Partnership on its journey towards meeting its long-term financial and sustainable objectives. Our bespoke solution gives exposure to a diversified set of best-in-class strategies that simultaneously stand to gain from and contribute to the transition to a more sustainable world. The appointment builds on Russell Investments’ extensive experience in designing and managing sustainable solutions for our clients.”
Karl Midl, CEO of Link Fund Solutions, added:
“As Operator of the Wales Pension Partnership, we are delighted to launch and oversee the new Sustainable Global Active Equity sub-fund. We recognise that sustainability is an increasingly important part of the investment process and we are pleased to support the Wales Pension Partnership in achieving their responsible investing objectives.”
ENDS
For more information:
WalesPensionPartnership@carmarthenshire.gov.uk
List of Constituent Authorities
Cardiff & Vale of Glamorgan Pension Fund
Clwyd Pension Fund
Dyfed Pension Fund
Greater Gwent (Torfaen) Pension Fund
Gwynedd Pension Fund
Powys Pension Fund
Rhondda Cynon Taf Pension Fund
City and County of Swansea Pension Fund
How exactly is the Wales Pension Partnership “democratically accountable” to we residents of Wales who pay ever-increasing council tax bills, some of which is presumably being used to invest in selected WPP investment vehicles including Bute Energy along with other so-called “sustainable” investment objectives?
At the same time the “Constituent Authorities” listed above will be tasked with the remit of ensuring that Bute Energy complies with the conditions attached to any planning permission granted to them, as it would be for Twyn Hywel Energy Park if the Welsh Labour Minister for Climate Change, Julie James decides that it should be allowed to proceed.
In my opinion, there does not presently appear to be enough if any safeguards in place to ensure that those overseeing investments using council taxpayer funds do not have vested and/or conflicts of interest with regard to Bute Energy and/or other ventures the Wales Pension Partnership invest in.
Edit: Please note that Peter Lewis, chair of the Powys County Council Pension Committee who also sits on the Wales Pension Partnership Joint Governance Committee, announced at a community meeting in Meifod I attended in September 2023 that the Powys County Council Pension Committee had decided not to invest in Bute’s WPP fund since “they had done their due diligence.” This was later confirmed by email. Most unfortunately he cannot of course disclose what made them decide not to invest with Bute.
It is well worth reading Bute Energy’s Collaborative Benefits Report in full if you are interested in how developers operate whilst marketing promises of largesse to communities.
Twyn Hywel Collaborative Benefits Report Final DNS3272053 – July 2023
Just in case you missed it, please note this lovely graphic at page 6 of the report linked above which was purposefully created to sell Bute’s allegedly “green” wares to the Caerphilly and Rhondda Cynon Tȃf communities which surround Eglwysilan Myndd and Eglwysilan Common where they propose to construct Twyn Hywel Energy Park.
I could write an essay dissecting Bute’s infographic but will merely mention for the moment, reiterate what has been a major bone of contention with Bute Energy since they began their marketing extravaganza over a year ago.
Since the summer of 2022, particularly after Bute Energy moved their headquarters to Cardiff, part of Bute Energy’s major marketing campaign has been that they are allegedly a Welsh company which seeks to help the Welsh Government meet its 100% renewable energy targets.
During presentations to community councils in Penybont and New Radnor, Powys in late summer and September 2022, Bute Energy representatives used the sales pitch that Bute Energy was “A Welsh company in Wales for Wales” with variations on this theme.
For background information please read the following excerpt from It’s the Radnor Forest:
It is our understanding that sometime during 2018 and 2019, a number of landowners in Penybont, Llandegley, New Radnor and Dolau were approached to participate in a local wind “farm” development referred to as Fron Goch.
Whilst some of the local landowners were approached directly by representatives of Bute Energy and Grayling Capital, other landowners were contacted by letters from McCartney's on behalf of Bute Energy and Grayling Capital, an Edinburgh-based private investment firm. The apparent object of the exercise was to get as many of the local farmers as possible to sign exclusivity contracts for the use of their land for Fron Goch wind farm.
Financial incentives based upon a per turbine annual income were dangled like carrots before the landowners. The grapevine has it that when some of the landowners compared notes they realised that the offers amongst them were not equitable which, understandably, is said to have caused some upset.
When local landowners were first approached, Bute Energy was a partnership between Njord Energy Limited, and a Scottish private investment firm called Grayling Capital based in Edinburgh. The three primary directors of Grayling Capital are also directors of Bute Energy and thus it appears that Bute Energy is the spawn of Grayling Capital.
The partnership between Grayling Capital and Njord Energy was confirmed by Bute Energy’s own website when viewed 21 March 2020, at the time the screenshot below was taken. It states as follows:
Bute Energy is a partnership between Grayling Capital and Njord. Founded in 2018, the two organisations brought together their knowledge and skills together to deliver in the cleaner and safer energy.
Grayling Capital, [is] an investment group based in Edinburgh. Njord has 30 years of experience in the renewable energy sector.
Bute Energy will apply decades of experience and expertise to harness the power of wind and we will help power the green economy with highly skilled jobs.
If one tries to find the original website for Bute Energy today, it appears to have been removed from the internet. Fortunately, we archived the "Who we are" page depicted above when the screenshot was taken.
It is notable that Hendy Wind Farm director and developer, Steven Radford was a director of RSCO 3750 along with the other Edinburgh based Grayling Capital/Bute Energy Directors, Stuart George, Oliver Millican and Lawson Steele. Radford officially resigned as a director of RSCO 3750 Limited on December 19, 2019. RSCO 3750 Limited subsequently became Bute Energy Limited via company name change papers filed and a certificate issued 13 March 2020.
According to Companies House, Grayling Capital LLP was incorporated, August 22, 2017. In March 2020, Grayling Capital described themselves as follows on their website:
WE INVEST IN RENEWABLE ENERGY
Grayling Capital is a private investment group based in Edinburgh. We focus on investments in sustainable industries.
We are currently developing a portfolio of onshore wind and solar power assets in the UK.
The team also has extensive expertise in real estate. From 2012-18 the team acquired, asset managed and disposed of a 40 asset £175m UK commercial real estate portfolio, delivering a Geared IRR of 32.9%.
We took a look at the Grayling Capital team members in March 2020 who were described at the time as having "a depth of experience in Private Equity, Finance and Real Estate Investment." There were also other associated companies being registered with Companies House at that time which were later renamed as Bute Energy’s numerous “energy parks” – vehicles through which they have designs to carpet the ancient landscapes of Wales with monstrous industrial wind turbines, solar arrays, substations and battery banks.
In March 2020, David Taylor, who at one time was an advisor for First Ministers Rhodri Morgan and Carwyn Jones, along with being a former adviser to Peter Hain when he was Secretary of State for Wales, was listed as a partner with Grayling Capital on their website. According to Companies House, Taylor officially joined Grayling Capital 20 September 2019 and resigned 13 September 2021.
David Taylor is of interest to us through his direct connection to Hendy Wind Farm.
Is there something from page 17 of their Corroborative Benefits Report that may provide an explanation for some of Bute Energy’s manoeuvres and almost manic marketing campaign during the past year?
If you didn’t notice it before, included on page 17 is the Welsh government’s definition of “locally owned” energy installations, “located in Wales, which are owned by one or more individuals or organisations wholly owned and based in Wales, or organisations whose principal headquarters are located in Wales.”
The latter would explain why Edinburgh based, Bute Energy acquired expensive office space in Cardiff last summer to house their rapidly expanding marketing team in order to seemingly meet the Welsh government’s definition for “locally owned” energy installations “whose principal headquarters are located in Wales.”
Where there’s a loophole, purposefully manufactured creations like Bute Energy will find a way, especially when they recruit people directly connected to the heart of the “sustainable” climate change captured Welsh government machine.
You may feel that perhaps I am being too harsh and cynical. Sadly, the eye-opening experience of the battle against Bute’s mentors at Hendy Wind Farm has greatly contributed to my current attitude.
Watch the marketing video which accompanied the above tweet by clicking below.
Does Bute Energy actually care about allegedly helping to “save the planet” and “making the Welsh weather work for Wales” by planting 200 - 250m tall industrial wind turbines atop the hills of ancient Wales? Or, is their primary motivating force profit for themselves, their financial backers, Copenhagen Infrastructure Partners and their investors?
this is horrendous. but exposure is a first step in battling the underlying corruption. well done!