NextPowerV ESG 110MW Spanish solar acquisition
London, 18 September 2024 – NextEnergy Capital (“NEC”), a leading global renewables manager specialised on the solar+ infrastructure sector, is pleased to announce that its latest international OECD Fund, NextPower V ESG (“NPV ESG”), has acquired a 110MW solar PV project in Central Spain from IB Vogt, a German-based utility-scale solar developer.
The 110MW solar project is currently in construction and is located outside Segovia, Spain. The project benefits from a long-term power purchase agreement (“PPA”) that has already been secured with an investment-grade counterparty and will provide a stable contracted revenue stream for NPV ESG. The project is expected to be energised in the first half of 2025 and features some of the latest solar technologies, including bi-facial modules and tracker technology to enhance performance and efficiency.
This 110MW solar project marks the fifth investment that the Fund has made in about one year from first close and follows the recent announcement of a 248MW portfolio of ready-to-build and in construction solar PV projects in North-Eastern Spain, a 100MW solar project in the USA, and two operational CfD portfolios of 50MW and 66MW in Poland.
NPV ESG’s portfolio has now reached 574MW of capacity across the US, Spain, and Poland with a further pipeline in exclusivity and advanced negotiations that would bring the total capacity of the NPV ESG to above 1 GW of PV solar assets across target geographies.
The successful rapid deployment of capital is partially due to NEC’s expertly sourced pipeline through its vast network as the leading specialist solar+ investment manager in its key target geographies allowing NPV ESG to leverage NEC’s existing relationships in a derisked approach. 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.
NPV ESG’s first operational assets are underpinned by a disciplined contracted revenue model structure with robust, credit-worthy counterparties enabling the Fund to benefit from long-term stable cashflows. NPV ESG leverages NEC’s track record of successful investments in the solar+ infrastructure sector since 2007, with over 460 utility-scale projects acquired and previous Funds delivering superior financial returns to investors.
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 anticipates further strong closes later this year as the team continues to raise towards NPV ESG’s target of $1.5 billion.
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:
“NextPower V ESG now has 358MW installed capacity in Spain, a country that benefits from one of the highest levels of irradiation in Europe. Spain remains an attractive target for further opportunities for NextPower V ESG due to its mature PV market, renewable energy sector track record, and well-developed infrastructure.”
Antonio Salvati, Managing Director NextPower V ESG at NextEnergy Capital, quoted:
“This marks NextPower V ESG’s second acquisition in Spain in a relatively short period. The project represents an attractive investment for NextPower V ESG in a well-understood market where NextEnergy Capital has a lot of experience with over 545MW of installed capacity across its various strategies and a dedicated team on the ground in our Madrid office. Spain benefits from one of the highest levels of solar irradiation in Europe and remains an attractive target for further opportunities for NextPower V ESG due to its mature PV market, renewable energy sector track record, and well-developed infrastructure”
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