Alterra, the UAE's $30 billion climate fund, has partnered with I Squared Capital to invest in Peru's Inkia Energy, its first direct investment in the Latin American renewable energy market.
The co-investment, made through Alterra's $1.2 billion Opportunity Fund, will help support Lima-based Inkia's operations in Peru, Alterra said in a statement on Thursday. The companies did not disclose the size of the investment.
The Opportunity Fund, launched this year, is a co-investment vehicle worth $1.2 billion, with a $250 million contribution from global financial institution BBVA to advance energy transition goals.
Inkia operates 2.6GW of generation capacity, which is about a quarter of Peru's electricity supply. The company has a renewables pipeline of about 4GW, including the expansion of 1GW solar and wind projects designed to support the country's decarbonisation drive.
Peru is also tapping into its power sector's strong long-term fundamentals, driven by rising electricity demand amid an acceleration in infrastructure development, mining activity and industrial growth.
Those give the country “significant renewable potential” and Alterra's investment reflects its focus on “backing scalable transition infrastructure in high-growth markets” and contribution to economic growth, chief executive Majid Al Suwaidi said.
“Mobilising long-term capital into growth markets is essential to accelerating the global climate transition,” he said.
“By investing in gigawatt-scale energy platforms such as Inkia Energy, we are not only expanding renewable generation but also supporting more resilient power systems and fostering long-term economic development.”
Launched during the 2023 Cop28 climate conference in Dubai, Alterra aims to raise $250 billion by 2030 to finance projects that support global energy transition.
This is aligned with the UAE's pledge to accelerate and promote the use of greener energy sources and develop the infrastructure needed for related projects.
Global renewable generation rose by about 8.5 per cent year-on-year in 2025, with annual global renewable capacity additions hitting a record 800GW, of which solar contributed 75 per cent, the latest data from the International Energy Agency shows.
The solar industry was the largest single source of growth, meeting more than 25 per cent of demand. The share of renewables in electricity generation expanded even more rapidly in 2025 than in the previous year, the Paris-based IEA said.
The value of the global renewable energy market is estimated to be at nearly $1.14 trillion in 2026 and is projected to grow to about $1.84 trillion by 2034, at a compound annual growth rate of almost 6.2 per cent, according to Fortune Business Insights.
Alterra's investment is a “powerful endorsement” for Inkia's role, which is central to Peru's energy future, said Sadek Wahba, chairman and managing partner at Miami-based I Squared Capital.
“We are well positioned to deliver the next phase of growth, including a gigawatt-scale renewables programme that will accelerate Peru's decarbonisation, while meeting the country's rapidly expanding electricity demand,” he added.
