NextEnergy shuts first tranche of ₤ 1bn solar fund

• An initial fundraise of ₤ 327m will certainly target new-build subsidy-free utility scale solar assets

NextEnergy Capital has announced the first close of its NextPower UK ESG fund at ₤ 327m, which is focused on spending right into new-build utility scale, subsidy-free solar in the UK.

The exclusive 10-year solar infrastructure fund has a hard cap of ₤ 1bn that might supply around 2GW of creating capacity at its restriction.

The UK Infrastructure Bank is a keystone investor, planning to spend as much as ₤ 250m on a match funding basis.

Various other capitalists consist of LGPS Central Limited, Merseyside Pension Fund and also Brunel Pension Partnership.

NextEnergy Capitsal tated it intends to increase the amount of subsidy-free solar power in the UK and also has actually created a pipe of projects consisting of 2 seed assets which are now in operation.

These are at websites in Llanwern, South Wales, as well as Strensham, Worcestershire, which together have actually an installed capacity of 115MW. Llanwern is the UK's biggest operating solar power plant.

The fund is targeting long-term secure cashflows via a gotten revenue version with robust, credit-worthy Power Purchase Agreements, aiding to provide UK off-takers with power price assurance whilst allowing them to attain and handle their carbon footprint and also sustainability objectives.

NextEnergy Capital chief executive officer Michael Bonte-Friedheim said: "NPUK ESG is the first UK fund that targets purely new-build subsidy-free utility scale solar assets, and also I am proud that NextEnergy Group is driving this forward, demonstrating how solar assets in the UK can supply investors with a considerable return while minimizing the carbon footprint of the UK.

" NPUK ESG marks the group's 4th fund, backed by an outstanding record considering that 2007. We continue to offer investors accessibility to our expert emphasis throughout the solar energy spectrum, from building, investment management and procedures."

NextEnergy Capital handling director and also head of financier relationships Shane Swords included: "We are delighted to invite our brand-new capitalists right into NPUK ESG, as well as to have actually removed over 65% of the fund's target at the very first close.

" It demonstrates investors' need for new-build subsidy-free, unlevered UK solar, but likewise highlights NextEnergy Capital as the go-to solar renewables manager.

" We have onboarded the capitalists with a very detailed and also prompt due diligence process, having actually officially launched NPUK in December 2021.

" It has actually been an enjoyment to work with them and I look forward to proceeding the fundraising energy and also introducing the second close of the fund in the next few months."