Article 9 Fund
LEI: 213800ZPHCBDDSQH5447
21 July 2022
NextEnergy Solar Fund Limited
("NESF" or the "Company")
Article 9 Fund
NextEnergy Solar Fund, the Specialist Solar and Energy Storage Climate Impact Fund, with a combined installed power capacity of 865MW, is pleased to report it is classified under Article 9 of the EU Sustainable Finance Disclosure Regulation and EU Taxonomy Regulation.
The Article 9 classification means that NESF has a sustainable investment objective and is committed to reporting its carbon emission reductions on an annual basis. The Company substantially contributes to climate mitigation whilst ensuring increased transparency on the integration of ESG related risks, whilst incorporating good governance in its investment decisions and strategy.
EU Sustainable Finance Disclosure Regulation ("SFDR")
The EU SFDR was introduced to improve disclosure on sustainability metrics and increase transparency. NextEnergy Capital ("NEC"), the Company's investment adviser and manager, continues to monitor compliance with the Level One obligations which came into force on 10 March 2021, and is preparing for the Level Two obligations, which are yet to be finalised and are set to come into force on 1 January 2023.
EU Taxonomy Regulation
The Company's portfolio is 100% aligned with the EU Taxonomy. All investments are in either solar PV, co-located battery storage and standalone battery storage assets. This equates to full alignment as they:
1. Substantially contribute to the climate change mitigation, environmental objective through a) generating and storing renewable energy, and b) establishing energy infrastructure required for decarbonising energy systems;
2. Meet the criteria of "Doing No Significant Harm" ("DNSH") through a robust Due Diligence process developed to comply with the fund's Sustainable Investment Policy;
3. Meet "minimum safeguards" as explained in NEC's Sustainable Investment Policy and Human Rights Position Statement.
Disclosures
The Company is committed to publish all disclosures required by the above regulation and has recently published the following disclosures on its website:
· Annex V Periodic Disclosure : ( https://cdn.nesf1.nextenergysolarfund.com/nesf/2022/06/NESF-%E2%80%93-SFDR-RTS-Annex-V.pdf )
· ESG Disclosure Document: ( https://cdn.nesf1.nextenergysolarfund.com/nesf/2021/03/NextEnergy-Capital-ESG-Disclosures-Final-09.03.2021.pdf )
· EU SFDR and EU Taxonomy FAQ : ( https://cdn.nesf1.nextenergysolarfund.com/nesf/2021/12/NextEnergyCapital_EUSFDR_FAQ.pdf )
These disclosure documents outline how the Company aligns with the EU SFDR and the Taxonomy, including disclosure requirements for financial product classified under Article 9. The Company is committed to maximise its disclosures and plans to comply with future EU SFDR and Taxonomy requirements, ensuring that maximum transparency around sustainability and ESG is provided to investors on an ongoing basis. The Company will issue its first standalone sustainability report in August 2022.
Michael Bonte-Friedheim, CEO of NextEnergy Group said:
"NextEnergy Solar Fund has been built around a mission to lead the transition to clean energy since inception. I am thrilled that NESF classifies as an Article 9 Fund under the EU SFDR and Taxonomy Regulation. NextEnergy's ESG team continues to ensure that NESF's ESG disclosures are industry-leading, as the fund continues to increase its ESG transparency and reporting for our investors into the future."
For further information:
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NextEnergy Group |
020 3746 0700 |
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Michael Bonte-Friedheim |
ir@nextenergysolarfund.com |
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Aldo Beolchini |
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Ross Grier |
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Peter Hamid (Investor Relations) |
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RBC Capital Markets |
020 7653 4000 |
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Matthew Coakes |
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Kathryn Deegan |
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Cenkos Securities |
020 7397 8900 |
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James King |
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William Talkington |
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Camarco |
020 3781 8334 |
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Owen Roberts |
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Eddie Livingstone-Learmonth |
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Ocorian Administration (Guernsey) Limited |
014 8174 2642 |
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Kevin Smith |
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Notes to Editors1 :
About NextEnergy Solar Fund
NESF is a Specialist Solar and Energy Storage Climate Impact Fund. The Company is structured as a renewable energy investment company listed on the premium segment of the London Stock Exchange that invests in utility-scale solar power plants and energy storage. The Company may invest up to 30% of its gross asset value in non-UK OECD countries, 15% in solar-focused private infrastructure funds, and 10% in energy storage.
NESF currently has a diversified portfolio comprising of the following:
Solar PV:
· 100 operating solar assets across the UK and Italy (primarily on agricultural, industrial, and commercial sites)
· A 50MW co-investment into a Spanish solar project alongside NextPower III ESG, currently under construction
· A 210MW co-investment into a Portuguese solar project alongside NextPower III ESG, currently under construction
· A subsidy-free UK solar project under construction (Whitecross 36MW)
· A ready-to-build subsidy-free UK solar project (Hatherden 50MW)
· A $50m commitment into NextPower III ESG (a private solar infrastructure fund providing exposure to both operating and under construction, international solar assets)
Energy Storage:
· A 50MW standalone battery storage project in Fife, Scotland, currently under construction (part of a 250MW joint venture with Eelpower)
· A 6MW co-located battery storage project at North Norfolk Solar Farm
The NESF portfolio has a combined installed power capacity of 865MW (excluding NextPower III MW on an equivalent look-through basis).
As at 31 March 2022, the Company had a gross asset value of £1,150 million, being the aggregate of the net asset value of the ordinary shares, the fair value of the preference shares and the amount of NESF Group debt outstanding, and a net asset value of £668.5 million.
NESF's investment objective is to provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of solar energy and energy storage infrastructure assets. The majority of NESF's long-term cash flows are inflation-linked via UK government subsidies.
For further information on NESF please visit www. nextenergysolarfund.com
Commitment to ESG
NESF is committed to ESG principles and responsible investment which make a meaningful contribution to reducing CO2 emissions through the generation of clean solar power. NESF will only select investments that meet the requirements of NEC Group's Sustainable Investment Policy. Based on this policy, NESF benefits from NEC's rigorous ESG due diligence on each investment. NESF is committed to reporting on its ESG performance in accordance with the UN Sustainable Development Goals framework and the EU Sustainable Finance Disclosure Regulation.
NESF has been awarded the London Stock Exchange's Green Economy Mark and has been designated a Guernsey Green Fund by the Guernsey Financial Services Commission.
Article 9
NESF is classified under Article 9 of the EU Sustainable Finance Disclosure Regulation and EU Taxonomy Regulation.
NESF's sustainability-related disclosures in the financial services sector in accordance with Regulation (EU) 2019/2088 can be accessed on the ESG section of both the NESF website ( nextenergysolarfund.com/esg/ ) & NEC Group website ( nextenergycapital.com/sustainability/transparency-and-reporting/ ).
About NextEnergy Group
NESF is managed by NextEnergy Capital, part of the NextEnergy Group. NextEnergy Group was founded in 2007 to become a leading market participant in the international solar sector. Since its inception, it has been active in the development, construction, and ownership of solar assets across multiple jurisdictions. NextEnergy Group operates via its three business units: NextEnergy Capital (Investment Management), WiseEnergy (Operating Asset Management) and Starlight (Asset Development).
NextEnergy Capital
NextEnergy Capital comprises the Group's investment management activities. To date, NEC has invested in over 325 individual solar plants for a capacity in excess of 2.3GW across it institutional funds.
www.nextenergycapital.com
· NextEnergy Solar Fund ("NESF") is a solar infrastructure investment company focused on the UK and other OECD countries, which is listed on the premium segment of the London Stock Exchange. It currently owns 865MW spread among 100 individual operating assets in the UK and Italy, comprising a gross asset value of £1,150m. NESF is one of the largest listed solar energy investment companies in the world.
· NextPower II ("NPII")a private fund made up of 105 individual operating solar power plants and an installed capacity of 149MW, focused on consolidating the substantial, highly fragmented Italian solar market. NPII was successfully divested in January 2022, a 2016 vintage vehicle that generated net IRRs in excess of its gross target of 10-12%.
· NextPower III ESG ("NPIII") is a private fund exclusively focused on the international solar infrastructure sector, principally targeting projects in carefully selected OECD countries, including the US, Portugal, Spain, Chile, Poland and Italy. NPIII is a fund that provides a positive social and environmental impact to the countries it has and will invest into. NPIII completed its fundraise with a total of $896m, including a SMA raised. The target of the fund was $750m.
· NextPower UK ESG ("NPUK")is a private unlevered fund investing in greenfield subsidy-free solar projects, with PPA's, in the UK. NPUK was launched in December 2021. The UK Infrastructure Bank is providing financing to the initial seed assets of the fund, and plans to invest up to £250m, half of the fund's total target fund size, on a match-funding basis.
WiseEnergy
WiseEnergy® is NextEnergy Capital Group's operating asset manager. WiseEnergy is a leading specialist operating asset manager in the solar sector. Since its founding, WiseEnergy has provided solar asset management, monitoring and technical due diligence services to over 1,400 utility-scale solar power plants with an installed capacity in excess of 1.8GW. WiseEnergy clients comprise leading banks and equity financiers in the energy and infrastructure sector.
Starlight
Starlight is NextEnergy Group's development company that is active in the development phase of solar projects. It has developed over 100 utility-scale projects internationally and continues to progress a large pipeline of c.5GW of both green and brownfield project developments across global geographies.
Notes:
1: All financial data is at 31 March 2022, being the latest date in respect of which NESF has published financial information
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