NextPower UK increases operating capacity

To date, NPUK has a diversified portfolio of ten UK utility scale solar assets with a capacity of 497 MW. The success of NPUK is in part attributable to the swift deployment of capital which started just seven weeks after the fund’s first close with the acquisition of two operational seed assets, Llanwern, (South Wales, 75 MW), and Strensham (Worcestershire, 40 MW). The remaining assets in the portfolio are either in construction or ready-to-build, with the Fund most recently signing an EPC contract on its tenth acquisition, Hatherden (Hampshire, 60 MW), a solar and energy storage project which has started construction.

Operational and construction assets in the portfolio now stand in excess of 75% of NPUK’s total capacity with the Fund remaining on track to outperform its return and dividend targets, with dividends to date being significantly above the target. Once fully deployed at approximately 2 GW 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 of £1 billion having successfully secured total funds committed to date of £625 million, 25% above its target of £500 million. 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 of solar and BESS assets. 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 two distribution payments to its investor base alongside reporting impressive net asset value growth.

Michael Bonte-Friedheim, NextEnergy Group CEO and Founder, said: “I am delighted that the NPUK portfolio continues to deliver solid progress, Pentlow is a fantastic asset that has been energised on time to become the Fund’s third operating solar asset. The UK currently has approximately 16 GW of operational utility scale solar deployed of which NextEnergy Capital Funds account for over 1 GW. I look forward to seeing further progress across the portfolio as NPUK’s other assets continue on their journey to energisation and become a significant part of the UK’s clean energy mix.”

Ross Grier, COO and Head of UK Investments, NextEnergy Capital, commented: “NPUK’s portfolio now has in excess of 75% of its total capacity of 497MW in either operational or construction phase, this is a huge achievement for a Fund which started its life less than two years ago. This further demonstrates the strength and skill set of the team driving NPUK forward as the Fund continues to deploy investor capital at pace and bring new high-quality assets online whilst paying attractive annual distributions to investors.”

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