NextPower UK ESG Press Release: 500MW Capacity Milestone Achieved
NextEnergy Capital, a global renewables manager specialised on the solar+ infrastructure sector, is pleased to announce that NextPower UK ESG (“NPUK”) has acquired its eleventh utility-scale solar project, Locks Solar Farm, raising its portfolio capacity to 515.5MW.
Locks Solar Farm, located in Hampshire, UK, is an 18.5MW ready-to-build project that successfully obtained a contract under the Contract-for-Difference (“CfD”) sixth allocation round (“AR6”) auction. The CfD covers the full generating capacity of Locks Solar Farm with the solar price successfully secured at a fixed price of c.£50. The project increases NPUK’s diversified portfolio to eleven UK utility-scale solar and BESS assets in the UK.
The CfD mechanism was introduced by the UK Government in 2014 to support low-carbon electricity generation by reducing financial risks faced by developers of renewable assets and providing 100% secure, inflation-linked regular income to drive further investment into cheap renewable energy in the UK.
NPUK remains on track to outperform its return and dividend targets, with dividends to date being significantly above the target. Once fully deployed at approximately 2GW capacity, NPUK will provide enough clean energy to power around 500,000 UK households per year, making a significant ESG impact in the UK.
NPUK continues to actively fundraise towards its hard cap having successfully secured total funds committed to date of £683m, c.37% above its target of £500m. NPUK has several investors currently in late-stage due diligence with further capital expected to be closed in the following weeks.
NPUK is a private UK solar fund that focuses on acquiring utility-scale solar and battery storage (“BESS”) assets at the ready-to-build stage, constructing them through energisation in order to build a large operating portfolio. Once the assets are operational, NPUK monetises its power sales through a fully contracted strategy which takes a hands-on approach to risk mitigation and value creation whilst optimising assets over the fund's life. Since its launch in August 2022, NPUK has already been able to make three distribution payments to its investor base alongside reporting impressive Net Asset Value growth.
Michael Bonte-Friedheim, NextEnergy Group CEO and Founder, said:
“NextPower UK ESG is the UK’s leading specialist private solar fund that is playing a crucial part in the UK’s transition to Net Zero, as well as increasing the UK’s energy security through independence. Since its launch in August 2022, NextPower UK ESG has successfully grown to eleven assets having already deployed over 63% of the commitments raised to date. NextPower UK ESG continues to demonstrate NextEnergy Capital’s successful track record of portfolio growth and positive fundraising in the UK and key target markets.”
Ross Grier, COO and Head of UK Investments, NextEnergy Capital, commented:
“As the new Labour Government grapples with how to achieve more renewables faster over the coming five years we are proud to be delivering at scale today. This acquisition represents a big milestone for NextPower UK ESG, the portfolio now has eleven assets across various project stages with a total capacity of 515.5MW, this is a great achievement for a Fund which started its life less than two years ago. Locks Solar Farm also benefits from the UK CfD mechanism which provides stability to investors in new solar projects in the UK by providing long-term contracted revenues which match the contracted revenue strategies of NextPower UK ESG.”
