NextEnergy Announces Third Close of NextPower UK ESG

NextEra Energy

(Credit: NextEra Energy)

by | Feb 22, 2023

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NextEra Energy NextPower

(Credit: NextEra Energy)

NextEnergy Capital, a global solar specialist in the renewables sector, has announced the third close of NextPower UK ESG at $634 million. The fund has exceeded its original target and is working toward capturing more positive momentum in the field.

This close was achieved six months after the fund’s first close in August 2022, and two months after its second close in December 2022. This closure of NPUK ESG is composed of commitments from multiple investors; the Border to Coast Pensions Partnership (an existing institutional investor topping up their allocation,) and the remaining committed capital from the UK Infrastructure Bank, who have now fully committed to the ESG plan. Looking forward, the fund expects to welcome additional investors in due course.

NPUK ESG is a private solar fund focused on unsubsidized new-build solar plants in the UK, which, at hard cap, will produce enough clean energy to power the equivalent of nearly 500,000 households.  From the Fund’s proprietary project pipeline, NEC has already acquired its first five utility-scale solar assets totaling 269MW, of which two are operational. The Fund has deployed capital rapidly, with the first drawdown being seven weeks after the first close.

NPUK is a 10-year closed-ended private fund managed by NextEnergy Capital, investing in greenfield subsidy-free solar projects, with PPAs, in the UK. The UK Infrastructure Bank is providing cornerstone match-funding capital. The fund offers investors the opportunity to earn attractive risk-adjusted returns from solar PV infrastructure in the UK. Fund returns are then enhanced through NextEnergy Capital’s expertise in technical outperformance, private wire agreements, repowering, and storage additionally. 

NextPower is a follow-on private OECD international solar strategy, NextPower V ESG. NPV ESG follows the success of its predecessor OECD international solar strategy, NextPower III ESG, launched in 2018 and closed in 2022. NPV ESG is targeting capital commitments of $1.5 billion with a $2 billion ceiling.

NPV ESG is NEC’s fifth investment vehicle focused on the solar sector. The NextEnergy Group is entirely focused on solar and complementary technologies such as battery storage and providing benefits to investors through its expertise across the entire solar value chain.

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