Foresight Q&A: Dan Wells on Investing in Climate Technology

Without investment, the energy transition would still be little more than a pipe dream.

According to the IEA, around US$2.2tn was invested in renewables, nuclear energy, grids, storage, low-carbon fuels, efficiency measures and electrification in 2025.

For context, that was twice as much as the US$1.1tn spent on fossil fuels during the same period.

With such a large amount of capital being funnelled into climate technology, the story of the investors at the heart of the transition is fascinating.

One of the UK's largest transition investors right now is Foresight Group, a London-based investment firm which has £13bn (US$17.4bn) of assets currently under management.

In this interview, Dan Wells, a Partner at the firm, discusses how the investment landscape is evolving, why grid infrastructure has become a priority and where he sees the biggest opportunities for climate finance.

Please introduce yourself and tell us about your role at Foresight.

I’m Dan Wells, a Partner at Foresight Group, where I co-manage our flagship energy transition fund, FEIP, and sit on the Executive Committee.

My role at Foresight is focused on raising and deploying capital into infrastructure and energy transition projects that are positioned to benefit from the long-term macro shift toward decarbonisation.

My role involves originating and executing investments, as well as working closely with our portfolio companies to support their growth and operational development.

Ultimately, my role is about backing high-quality assets and teams and playing an active role in scaling solutions that are critical to the energy transition.

What kind of work does Foresight do?

Foresight Group is a FTSE 250 investment manager with a focus on private markets through its UK & Ireland regional Private Equity vehicles, and our UK and European Real Assets strategies. Within our Real Assets’ strategy, the energy transition sits right at the core.

Historically, much of the market’s attention has been on deploying renewable generation, especially wind and solar. We’ve been active in that space ourselves and have investments across the UK, Greece, Italy, the Nordics and Spain. However, increasingly, our focus is on what comes next meaning building the infrastructure that enables those assets to function reliably and at scale.

Through our flagship energy transition strategy, FEIP, we’re investing across a broader ecosystem, including grid-scale storage, interconnectors, and grid-supporting assets that provide flexibility, stability and resilience to the system. We are firm believers that the energy transition is no longer just about generating clean energy, but ensuring that the system which supports it is balanced and stable.

Added to that, at Foresight, we take a hands-on, partnership-driven approach when it comes to managing our assets. That means spending time with management teams, helping shape strategy, and ensuring we’re building resilient, future-focused businesses that can deliver both strong financial returns and meaningful environmental impact.

The sector has seen a lot of upheaval in 2026. Has that been reflected in your projects, assets, and internal and external conversations?

I’d characterise it less as upheaval and more as a mindset shift which we’re seeing across the spectrum from policymakers, businesses, investors, all the way to consumers.

Events like the Spanish blackout in April 2025 brought into sharp focus something the industry has been grappling with for a while: the imbalance between rapid renewable deployment and the underlying grid infrastructure needed to support it. The need to upgrade the grid and make it fit for purpose is now increasingly becoming a priority. That need has very much shaped both our internal investment priorities and our external conversations.

More recently, the crisis in the Middle East has shone the spotlight once again on the need for energy independence and energy security, especially in Europe, which has been fundamentally dependent on imported energy, often from geopolitically contentious regions. 

As a result, there’s a much greater appreciation today from policymakers, investors and energy system operators that resilience is not a ‘nice to have’ but a fundamental necessity.

At Foresight, we’re seeing that reflected in the types of opportunities coming to market, but also in regulatory momentum. 

How do projects like MaresConnect fit with these trends?

MaresConnect is a great example of the kind of infrastructure that sits at the heart of this next phase of the energy transition. 

MaresConnect is an interconnector project, a subsea electricity cable linking two markets: the Republic of Ireland and the UK.

Interconnectors help create an energy system that is ‘bigger than the weather’. They allow power to move between regions, balancing supply and demand across geographies. 

In a renewables-led system, it’s important to be able to move those green electrons from one place to another, especially when energy generation is variable and often concentrated in specific locations. By enabling cross-border flows, interconnectors reduce congestion, improve system efficiency and provide a critical buffer during periods of stress on the grid.

From an investment perspective, interconnectors typically offer long-duration, often regulated revenue streams, but their real value is systemic; they prevent local imbalances from becoming system-wide failures.

Does MaresConnect align with Europe's aim to become more resilient following the latest energy crisis?

Very much so. This project is directly aligned with that objective.

Europe’s recent energy challenges have reinforced the importance of both resilience and energy independence. Interconnectors play a central role in both. They enhance security of supply by allowing countries to import power during shortages and export surplus when needed, while also reducing reliance on single sources of energy. 

We’ve seen how stronger interconnection can prevent or mitigate system stress. The Spanish blackout itself was exacerbated by limited interconnection capacity. 

Projects like MaresConnect aren’t just infrastructure investments. They form part of a broader resilience architecture that Europe needs and is actively trying to build.

Is now a good time to invest in the energy transition?

In our view, yes, otherwise we wouldn’t be doing it! 

The first phase of the energy transition was defined by scaling generation, often supported by subsidies. The next phase is about system optimisation, making energy generation reliable, flexible, and economically sustainable. 

That shift is creating a new and, in many ways, more attractive investment landscape. Technologies like battery storage, grid infrastructure, and system services are moving from being peripheral to being essential. Crucially, they are increasingly supported by clearer revenue frameworks and regulation. 

At the same time, from a portfolio construction perspective, these real assets can offer resilience in their own right. They often offer stable, long-term cash flows while also enhancing portfolio stability through low or negative correlation. The opportunity, therefore, is huge!