NextPower V ESG Enters Agreement To Acquire 248MW Spanish Solar PV Portfolio
NextEnergy Capital is pleased to announce that its latest international OECD Fund, NextPower V ESG has entered into a binding agreement to acquire a 248MW portfolio of 12 solar PV projects in North-Eastern Spain.
This 248MW solar portfolio marks the fourth investment that the Fund has made. The announcement comes just after the recent closing of a long-term debt financing for an operational portfolio managed by NPV ESG’s predecessor Fund NextPower III ESG in the same region. This transaction for NPV ESG follows the recent acquisitions of a 100MW solar project in the USA, as well as two operational CfD portfolios of 50MW and 66MW in Europe.
NPV ESG’s portfolio has been significantly built out during the last six months, with 348MW in construction, 116MW in operations, and over 500MW in exclusivity or advanced negotiation. Since the launch of NPV ESG, NEC has evaluated over 88GW of pipeline with 18GW of high-quality, attractive investment opportunities identified for more detailed evaluation.
To date, NPV ESG has secured $745 million (including $150 million for co-investments) in total commitments with investors ranging from a UK LGPS investment pool and a Dutch pension fund, alongside re-ups from existing NextPower III ESG investors, including 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 and the team continues to raise towards NPV ESG’s target of $1.5 billion.
Given the current combination of both the lower costs of solar photovoltaic modules and higher power prices, the investment team is enthusiastic about the opportunity set presented. With its first operational assets expected to pay dividends in the second half of 2024, 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. NPV ESG continues to maintain a disciplined contracted revenue model with robust, credit-worthy counterparties enabling the Fund to generate long-term stable cashflows.
NPV ESG is 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 c.4-5GW, 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.
Aldo Beolchini, CIO and Managing Partner at NextEnergy Capital, said
“NPV ESG continues to go from strength to strength, this latest investment in Spain shortly follows the recent acquisition in Poland which again demonstrates NEC’s ability to deploy capital quickly and efficiently, whilst also highlighting NEC as a market leader in the solar space with over 360MW of capacity added to NPV ESG in the last twelve weeks.”
Antonio Salvati, Managing Director NextPower V ESG at NextEnergy Capital, quoted:
“We are delighted with the binding agreement to acquire this sizable Spanish Portfolio. NEC currently manages c.500MW of operating solar assets in this geography which remains an attractive market to deploy capital. We expect to continue investing in Iberia through our Madrid office and as NPV ESG currently has multiple additional projects under advanced negotiation in the region.”