London-based NextEnergy Achieved Third Close for Its Private NPUK ESG Fund

• London-based NextEnergy Capital has achieved the third close of its NextPower UK ESG (NPUK ESG) fund, the UK’s first private investment fund for unsubsidised solar projects, at GBP 595 million.

What happened?

NextEnergy Capital, a London-based solar investment and asset manager, has reached the third close of its NextPower UK ESG (NPUK ESG) fund, which is the UK’s first private investment fund for unsubsidised solar projects. The 10-year fund, launched in December 2021, has achieved commitments from UK and Middle East investors, including the UK Infrastructure Bank (UKIB), LGPS Central Limited, Merseyside Pension Fund and Brunel Pension Partnership. The third close was reached with commitments from existing investors Border to Coast Pensions Partnership and UKIB, which is acting as the cornerstone investor and will provide up to GBP 250 million on a match funding basis. 

Why does it matter?

This is an important development for the renewable energy sector in the UK, as it marks the first private investment fund for unsubsidised solar projects. It also demonstrates the increasing interest in solar energy investments from institutional investors, as the fund has exceeded its initial target of GBP 500 million. This is not only a sign of the growing confidence in solar investments, but also a testament to the fact that renewable energy projects can be both economically viable and environmentally sustainable. 

What's next?

The fund is expected to continue to grow in the coming months, as the UK moves closer to its goal of achieving net-zero carbon emissions by 2050. As the market for renewable energy investments continues to expand, solar energy is likely to be one of the major beneficiaries. This could lead to more private investment funds for unsubsidised solar projects being launched in the future, helping to drive the UK's transition to a greener, more sustainable energy system.