Second Co-Investment: Long Term PPA Secured
LEI: 213800ZPHCBDDSQH5447
04 April 2023
NextEnergy Solar Fund Limited
("NESF" or the "Company")
Second International Co-Investment Update:
Long Term PPA Secured
NextEnergy Solar Fund, the specialist solar+ fund, is pleased to announce that its second international solar co-investment named Santarém, a 210MW project in Portugal in which NESF holds a 13% stake, has signed a long-term Power Purchase Agreement ("PPA") with Statkraft, a leading renewable producer in Europe's energy market.
Under this agreement, Statkraft will acquire the electricity production from Santarém, made up of three photovoltaic solar plants currently under construction in Portugal, for eight years. The PPA builds on the existing successful relationship between NextEnergy Capital and Statkraft, following an earlier signed PPA between the two covering Agenor, a 50MW Spanish solar asset and NESF's first co-investment, where the Company took a 25% stake alongside NextPower III ESG.
Santarém and Agenor were the first direct international co-investments made by the Company, sourced alongside its $50m commitment in NextPower III ESG. NextPower III ESG is a $896m private solar fund focused on utility scale solar assets in OECD markets, which provided NESF the opportunity to efficiently and quickly access an established portfolio of operational and in-construction international solar assets. To date, NextPower III ESG has acquired 1.8GW of solar, made up of 149 individual high-quality assets across the USA, India, Chile, Portugal, Spain, Greece, and Poland. Co-investments alongside NextPower III ESG remain attractive to NESF as they are undertaken on a no-fee, no-carry basis.
Ross Grier, UK Managing Director of NextEnergy Capital commented:
"The PPA in place for Santarém, of which NESF holds a 13% stake, is with a high credit counterparty, provides secured long-term visibility of cash flows, and ultimately provides stable returns for NESF. International solar co-investments alongside private capital continues to offer attractive growth opportunities for NESF alongside some of the largest institutional investors in the world."
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For further information:
NextEnergy Capital Michael Bonte-Friedheim |
020 3746 0700 ir@nextenergysolarfund.com |
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Ross Grier |
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Stephen Rosser |
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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+ fund listed on the premium segment of the London Stock Exchange and is a constituent of the FTSE250. 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 utility-scale solar energy and energy storage infrastructure assets. The majority of NESF's long-term cash flows are inflation-linked via UK government subsidies.
NESF currently has a diversified portfolio comprising of the following:
Solar PV:
· 99 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 UK solar project under construction (Whitecross 36MW)
· A ready-to-build 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:
Joint Venture Partnership with Eelpower:
· A 50MW standalone battery storage project in Fife, Scotland, currently under construction (part of a £300m joint venture with Eelpower)
· A portfolio of 250MW pre-construction standalone battery storage projects in the East of England
Co-located programme:
· First site identified for a 6MW co-located battery storage project at North Norfolk Solar Farm and discussions are ongoing with the local distribution network operator to confirm an energisation date.
The NESF portfolio has a combined installed power capacity of 865MW (excluding NextPower III MW on an equivalent look-through basis). NESF 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 assets.
As at 31 December 2022, the Company had an unaudited gross asset value of £1,252m.
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 Fund
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 & NEC website.
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 ("NEC") comprises the Group's investment management activities. To date, NEC has invested in over 350 individual solar plants for a capacity in excess of 2.4GW across it institutional funds. www.nextenergycapital.com
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NextEnergy Solar Fund ("NESF") is a specialist solar+ fund, which is listed on the premium segment of the London Stock Exchange. It currently has an installed capacity of 865MW spread among 99 individual operating assets in the UK and Italy, comprising an unaudited gross asset value of £1,252m. NESF is one of the largest listed solar and energy storage investment companies in the world. |
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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%. |
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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 an SMA raised. The target of the fund was $750m. |
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NextPower UK ESG ("NPUK") is a private unlevered fund investing in greenfield subsidy-free solar projects, with PPA's, in the UK. NPUK ESG is a 10-year closed-ended private fund launched in December 2021 targeting £500m. To date, NPUK has raised total commitments of £5 95 m exceeding its target six within six months of first close , with the UK Infrastructure Bank providing cornerstone match-funding o f £250m.
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NextPower V ESG ("NPV") is a private contracted OECD solar strategy that offers investors the opportunity to earn strong risk-adjusted returns from the solar PV infrastructure asset class with a highly experienced team and a track record of success in OECD-based solar deployment. The strategy will primarily invest in OECD solar assets and adjacent technologies (e.g. battery storage) in the target markets. NPV ESG is targeting $1.5bn in size with a $2bn ceiling. |
WiseEnergy ®
WiseEnergy® is NextEnergy 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 1,350 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.10GW of both green and brownfield project developments across global geographies.
Notes:
1: All financial data is unaudited at 31 December 2022, being the latest date in respect of which NESF has published financial information
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