Alterra Takes UAE Climate Capital Into Peru’s Power Grid
Alterra, the UAE climate fund, has made its first direct Latin American renewable energy investment through a co-investment in Peru’s Inkia Energy with I Squared Capital. The deal uses Alterra’s $1.2 billion Opportunity Fund and targets an operator with 2.6GW of generation capacity and a renewables pipeline of about 4GW. The investment gives the UAE another overseas climate-finance test: whether long-term capital can support power-sector growth in a market where mining, infrastructure and industrial demand are rising.
Alterra is taking UAE climate capital into Peru’s power sector through a co-investment in Inkia Energy with I Squared Capital, its first direct investment in Latin America’s renewable energy market.
UAE Climate Finance Moves Into Latin America
Alterra is the UAE’s $30 billion climate fund.
The Inkia transaction is being made through its $1.2 billion Opportunity Fund, a co-investment vehicle that includes a $250 million contribution from BBVA.
The public record still lacks the size of the Inkia investment.
The transaction is being presented less as a single-asset purchase and more as a test of how UAE-backed transition capital can enter high-growth power markets outside the Gulf.
Inkia is based in Lima and operates 2.6GW of generation capacity, equal to about a quarter of Peru’s electricity supply.
Its renewables pipeline is about 4GW, including an expansion of 1GW in solar and wind projects tied to Peru’s decarbonisation plans.
The Peru Bet Is About Power Demand
Peru gives Alterra a different kind of transition exposure from Gulf infrastructure or mature-market renewable platforms.
Infrastructure development, mining activity and industrial growth are driving electricity demand, making reliable generation capacity part of the economic story as much as the climate story.
Alterra chief executive Majid Al Suwaidi linked the investment to long-term capital for growth markets and to gigawatt-scale energy platforms.
Inkia already has generation capacity in place, while its pipeline gives investors a path to expand renewable supply if projects move from planning into delivery.
The deal also extends Alterra’s post-Cop28 investment mandate.
The fund was launched during the 2023 Cop28 climate conference in Dubai and has said it aims to raise $250 billion by 2030 for projects that support the global energy transition.
The Numbers Put Inkia In A Wider Renewable Build-Out
The timing lines up with a broader renewable capacity surge.
In 2025, renewable generation worldwide was about 8.5 per cent higher than a year earlier.
New renewable capacity reached 800GW, and solar made up 75 per cent of that build-out while meeting more than 25 per cent of demand.
The market backdrop is large enough to attract sovereign and institutional capital.
Global renewable energy is estimated at nearly $1.14 trillion in 2026; the cited projection reaches about $1.84 trillion by 2034, with growth of almost 6.2 per cent a year.
That scale explains why investors are chasing power platforms that can expand, not isolated demonstration projects.
The Real Test Is Execution In Peru
For the UAE, the investment adds another outward-facing climate-finance deal to its economic diplomacy.
For Inkia, the question is whether new capital can turn a large pipeline into operating power without losing the reliability needed by Peru’s mines, industrial users and infrastructure projects.
I Squared Capital chairman and managing partner Sadek Wahba framed Inkia’s next phase around a gigawatt-scale renewables programme.
What matters now is concrete: disclosed investment size, project-level approvals, solar and wind expansion timelines, and whether Inkia’s additional capacity actually keeps pace with Peru’s electricity demand.
