Canada Pension Plan Investment Board (CPP Investments) announced that it has invested approximately US$200 million in Redaptive, a leading Energy-as-a-Service provider. Redaptive funds and installs energy-saving and energy-generating equipment to help organizations reduce energy waste, save money, lower their carbon emissions, and meet their sustainability goals. Certain existing investors, including Linse Capital and CBRE, will also be participating in the investment. Redaptive is expecting to announce a second close in early 2023.

Redaptive provides enterprise customers with data-driven energy generation and efficiency programs including HVAC, LED lighting, solar, EV and other utility upgrades that can be deployed at large sites or across distributed real estate portfolios. Redaptive funds the upfront costs, allowing customers to overcome the financial and logistical barriers to investing in energy efficiency and sustainability.

“We are excited about funding Redaptive’s growing business which helps organizations to rapidly reduce energy consumption, save internal capital, and meet GHG emission reduction targets across their entire real estate portfolios,” said Bruce Hogg, Managing Director, Head of Sustainable Energies at CPP Investments. “This investment is consistent with our focus on investing in best-in-class companies that are supporting the global energy transition by innovating in energy efficiency, sustainable energy, and the deployment of data solutions.”

See related article: CPP Investments Announces Richard Manley Chief Sustainability Officer

Redaptive has experienced significant growth since its formation, including expected bookings of over 100% year-over-year in 2022. The company is well positioned to continue capturing share in the expanding Energy-as-a-Service market, through its innovative, turnkey sustainability solution to large companies globally. According to recent research, the Energy-as-a-Service market in North America is forecasted to grow at a 30% CAGR between 2022 and 2030, from US$4.8 billion to US$38.5 billion.

“This funding gives Redaptive the capability to accelerate our growth and help more customers reach and exceed their energy efficiency and sustainability goals. In CPP Investments, we have found a partner who understands our mission and shares our passion for making carbon reduction an attainable goal for organizations around the world,” said Redaptive CEO Arvin Vohra.

CPP Investments’ Sustainable Energies group is active across the global energy system, with net assets totaling approximately C$30 billion as of September 30, 2022, including investments in renewables, utilities, and power generation.