NextPower V ESG Achieves Multiple Milestones in First Half of 2024

London, July 2nd, 2024 –  NextEnergy Capital is pleased to provide an update on NextPower V ESG’s (“NPV ESG”) multiple achievements, including asset growth and strong fundraising momentum, over the last six months.

Fundraising:

  • Additional capital of $265 million in H1 2024. The fund now has secured $745 million (including $150 million for co-investments) in total commitments.
  • Investors now include a UK LGPS investment pool, a Dutch pension fund, re-ups from existing NextPower III ESG investors, KLP, a German occupational pension fund, and a large Nordic pension fund.
  • NextEnergy Capital continues to build on its positive fundraising momentum with a number of investors around the globe currently in due diligence.
  • The team continues to raise towards NPV ESG’s target of $1.5 billion ($2 billion hard cap).

Portfolio & Pipeline:

  • Portfolio significantly built out during H1:
    • 116MW of operational solar assets.
    • 100MW of solar assets under construction, with a further 234MW in exclusivity.
    • 173MW ready to build solar assets in exclusivity.
    • 386MW of solar assets in various project stages in advanced negotiation.
    • 1GW of solar assets in advanced pipeline across the US, Poland, Spain, and Italy.
  • Since the launch of NPV ESG, NEC has evaluated over 88GW of pipeline.
  • Access to a pipeline of 18GW high-quality, attractive investment opportunities, including 3GW of projects originating from Starlight, NextEnergy Group’s in-house asset developer.
  • Selected and targeted 1GW of solar and battery assets in advanced negotiations across the US, Poland, Spain, and Italy.
  • Starlight Right-of-First-Offer in place for projects that meet NPV ESG’s investment strategy.
  • Pipeline includes projects in Spain, Poland, Italy, Canada, and the US.

Acquisitions:

  • Closed the first two investments:
    • A 100MW utility-scale solar project in Highland County, Florida, USA.
    • A European CfD acquisition for a portfolio that comprises operating plants totalling 66MW which benefits from contracted revenues that are CPI-linked for at least 15 years.

Return:

  • Given the lower costs of solar and higher power prices, the fund is tracking above its target IRRs.
  • First operational asset is expected to pay dividends in H2,during the investment phase.
  • NPV ESG leverages NEC’s track record of successful investments in the solar+ infrastructure sector since 2007, with over 400 utility-scale projects acquired and previous funds delivering superior financial returns to investors.
  • Continue to maintain a disciplined contracted revenue model with robust, credit-worthy counterparties enabling the Fund to generate long-term stable cashflows.

ESG:

  • Classified as an Article 9 Fund under the EU SFDR providing tangible and measurable impact including biodiversity measures.
  • Upon reaching its investment ceiling and delivering 4GW, NPV ESG is forecasted to generate enough clean energy to power the equivalent of up to 1.1 million households per year and avoid an estimated fossil fuel consumption of up to nearly 220 million m3 of natural gas annually.

NPV ESG’s investment strategy targets the solar+ infrastructure sector in carefully selected OECD markets, with the objective of building significant portfolios in each target market, creating value with a hands-on approach, establishing an operational track record and divesting the portfolio before the end of the fund’s life in 2033.

Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group, said:

“NextPower V ESG is our flagship international OECD private vehicle that continues to demonstrate strong portfolio momentum, most recently bringing a 100MW Florida solar asset and a 65.6MW European solar portfolio into the Fund. 

NextPower V ESG’s investment strategy targets the solar+ infrastructure sector in carefully selected OECD markets, with the objective of building significant portfolios in each target market, creating value with a hands-on approach, and establishing an operational track record before divesting the portfolio before the end of the fund’s life in 2033.  It is this approach alongside lower costs of solar and higher power prices that has led to the Fund’s market-leading returns above its original target IRRs and NextPower V ESG remains on track to pay dividends in H2 2024 during the investment phase of the Fund.”

Shane Swords, Managing Director and Head of Investor Relations at NextEnergy Capital, quoted:

“NextPower V ESG has achieved strong momentum in H1 2024 and we look forward to continuing this progress into H2 and beyond.

NextPower V ESG continues to make significant progress in raising additional capital, having already secured $745m in total commitments and we look forward to updating the market shortly on further fundraising.  The NextPower V ESG investment team continue to rapidly deploy investors’ capital, having already significantly built out the portfolio so far, and continues to secure attractive investment opportunities within the Fund’s 18GW high-quality pipeline.”

Download the full Press Release here