TIDMNESF
RNS Number : 5699E
NextEnergy Solar Fund Limited
31 October 2022
LEI: 213800ZPHCBDDSQH5447
31 October 2022
NextEnergy Solar Fund Limited
("NESF" or the "Company")
250MW Battery Storage Project Acquisition
NextEnergy Solar Fund, the specialist solar and energy storage
climate impact fund with a combined installed power capacity of
865MW, is pleased to announce it has acquired the development
rights, permits, and initial grid milestones for a 250MW portfolio
of high-quality battery storage projects and grid connections. The
strategic portfolio named 'Project Lion', located in the East of
England, was acquired for a consideration of GBP32.5m and will
increase the current announced standalone battery storage in NESF's
joint venture partnership with Eelpower to 300MW.
Once constructed, the project will provide vital grid balancing
services whilst harnessing excess electricity generation from wind
at low import prices and then exporting electricity at times of low
generation and high prices. The project has secured planning
permission and grid connection rights.
The project provides a very attractive return profile for the
Company's portfolio as battery storage is a highly complementary
technology to solar photovoltaics, being uncorrelated and providing
further diversification to the Company's portfolio from a
technology, revenue and geographic perspective.
The project is a two-hour (500MWh) duration system and is
expected to be energised in 2025, targeting an asset life of at
least 50 years.
This announcement sets another key milestone for the Company and
further increases NextEnergy Solar Fund's participation in the UK
battery storage market. Once energised, the project will
significantly contribute to increasing the UK's energy independence
and will help accelerate the increased penetration of renewable
energy in the UK.
Full construction of the project remains subject to shareholder
and FCA approval due to the Company's existing investment policy
being limited to 10% of Gross Asset Value into energy storage. The
Company's investment manager and advisor, NextEnergy Capital, will
continue to consult investors over the coming months to seek
support to increase this limit to allow the Company to fully
capture the energy storage growth opportunities available to the
fund.
Kevin Lyon, Chairman of NextEnergy Solar Fund commented:
"This acquisition of development rights adds significantly to
NESF's participation in the UK battery storage investment space.
The project will take our battery storage programme up to a
capacity of 300MW, showing how NESF has been able to secure a
significant development pipeline of storage projects in a short
timeframe. NESF offers investors a unique investment opportunity,
making a real difference in the transition to net zero."
Michael Bonte-Friedheim, CEO of NextEnergy Group said:
"The project will provide crucial grid balancing services for a
congested area in the UK, helping manage the ebbs and flows of
renewable energy generation and nationwide demand for electricity.
For NESF, it is a site that adds to its burgeoning exposure to UK
battery storage, a sector where we, as the investment advisor, see
enormous growth potential with synergies to NESF's current solar
portfolio. We look forward to constructing this project by 2025 and
to operating it for decades into the future."
For further information:
NextEnergy Capital Group 020 3746 0700
Michael Bonte-Friedheim ir@nextenergysolarfund.com
Aldo Beolchini
Ross Grier
Peter Hamid (Investor Relations)
RBC Capital Markets 020 7653 4000
Matthew Coakes
Kathryn Deegan
Cenkos Securities 020 7397 8900
James King
William Talkington
Camarco 020 3781 8334
Owen Roberts
Eddie Livingstone-Learmonth
Ocorian Administration (Guernsey) Limited 014 8174 2642
Kevin Smith
Notes to Editors(1) :
About NextEnergy Solar Fund
NESF is a specialist solar and energy storage climate impact
fund. The Company is structured as a renewable energy investment
company listed on the premium segment of the London Stock Exchange
that invests in utility-scale solar power plants and energy
storage. The Company may invest up to 30% of its gross asset value
in non-UK OECD countries, 15% in solar-focused private
infrastructure funds, and 10% in energy storage.
NESF currently has a diversified portfolio comprising of the
following:
Solar PV:
-- 100 operating solar assets across the UK and Italy (primarily on
agricultural, industrial, and commercial sites)
-- A 50MW co-investment into a Spanish solar project alongside NextPower
III ESG, currently under construction
-- A 210MW co-investment into a Portuguese solar project alongside
NextPower III ESG, currently under construction
-- A UK solar project under construction (Whitecross 36MW)
-- A ready-to-build UK solar project (Hatherden 50MW)
-- A $50m commitment into NextPower III ESG (a private solar infrastructure
fund providing exposure to both operating and under construction,
international solar assets)
Energy Storage:
Joint Venture Partnership with Eelpower:
-- A 50MW standalone battery storage project in Fife, Scotland,
currently under construction (part of a GBP300m joint venture
with Eelpower)
-- A portfolio of 250MW pre-construction standalone battery
storage projects in the East of England
Co-located programme:
-- First site identified for a 6MW co-located battery storage
project at North Norfolk Solar Farm
The NESF portfolio has a combined installed power capacity of
865MW (excluding NextPower III MW on an equivalent look-through
basis).
As at 30 June 2022, the Company had an unaudited gross asset
value of GBP1,198m, being the aggregate of the net asset value of
the ordinary shares, the fair value of the preference shares and
the amount of NESF Group debt outstanding, and an unaudited net
asset value of GBP717.2m.
NESF's investment objective is to provide ordinary shareholders
with attractive risk-adjusted returns, principally in the form of
regular dividends, by investing in a diversified portfolio of solar
energy and energy storage infrastructure assets. The majority of
NESF's long-term cash flows are inflation-linked via UK government
subsidies.
For further information on NESF please visit www.
nextenergysolarfund.com
Commitment to ESG
NESF is committed to ESG principles and responsible investment
which make a meaningful contribution to reducing CO2 emissions
through the generation of clean solar power. NESF will only select
investments that meet the requirements of NEC Group's Sustainable
Investment Policy. Based on this policy, NESF benefits from NEC's
rigorous ESG due diligence on each investment. NESF is committed to
reporting on its ESG performance in accordance with the UN
Sustainable Development Goals framework and the EU Sustainable
Finance Disclosure Regulation.
NESF has been awarded the London Stock Exchange's Green Economy
Mark and has been designated a Guernsey Green Fund by the Guernsey
Financial Services Commission.
Article 9
NESF is classified under Article 9 of the EU Sustainable Finance
Disclosure Regulation and EU Taxonomy Regulation.
NESF's sustainability-related disclosures in the financial
services sector in accordance with Regulation (EU) 2019/2088 can be
accessed on the ESG section of both the NESF website (
nextenergysolarfund.com/esg/ ) & NEC Group website (
nextenergycapital.com/sustainability/transparency-and-reporting/
).
About NextEnergy Group
NESF is managed by NextEnergy Capital, part of the NextEnergy
Group. NextEnergy Group was founded in 2007 to become a leading
market participant in the international solar sector. Since its
inception, it has been active in the development, construction, and
ownership of solar assets across multiple jurisdictions. NextEnergy
Group operates via its three business units: NextEnergy Capital
(Investment Management), WiseEnergy (Operating Asset Management)
and Starlight (Asset Development).
NextEnergy Capital
NextEnergy Capital comprises the Group's investment management
activities. To date, NEC has invested in over 350 individual solar
plants for a capacity in excess of 2.4GW across it institutional
funds. www.nextenergycapital.com
-- NextEnergy Solar Fund ("NESF") is a solar infrastructure investment
company focused on the UK and other OECD countries, which is listed
on the premium segment of the London Stock Exchange. It currently
owns 865MW spread among 100 individual operating assets in the
UK and Italy, comprising an unaudited gross asset value of GBP1,198m.
NESF is one of the largest listed solar energy investment companies
in the world.
-- NextPower II ("NPII") a private fund made up of 105 individual
operating solar power plants and an installed capacity of 149MW,
focused on consolidating the substantial, highly fragmented Italian
solar market. NPII was successfully divested in January 2022, a
2016 vintage vehicle that generated net IRRs in excess of its gross
target of 10-12%.
-- NextPower III ESG ("NPIII") is a private fund exclusively focused
on the international solar infrastructure sector, principally targeting
projects in carefully selected OECD countries, including the US,
Portugal, Spain, Chile, Poland and Italy. NPIII is a fund that
provides a positive social and environmental impact to the countries
it has and will invest into. NPIII completed its fundraise with
a total of $896m, including an SMA raised. The target of the fund
was $750m.
-- NextPower UK ESG ("NPUK") is a private unlevered fund investing
in greenfield subsidy-free solar projects, with PPA's, in the UK.
NPUK ESG recently announced its first close at GBP327 million,
which is over 65% of the funds target of GBP500 million. The UK
Infrastructure Bank is the cornerstone investor for the fund and
plans to invest up to GBP250 million on a match funding basis.
WiseEnergy
WiseEnergy(R) is NextEnergy Capital Group's operating asset
manager. WiseEnergy is a leading specialist operating asset manager
in the solar sector. Since its founding, WiseEnergy has provided
solar asset management, monitoring and technical due diligence
services to over 1,350 utility-scale solar power plants with an
installed capacity in excess of 1.8GW. WiseEnergy clients comprise
leading banks and equity financiers in the energy and
infrastructure sector.
www.wise-energy.com
Starlight
Starlight is NextEnergy Group's development company that is
active in the development phase of solar projects. It has developed
over 100 utility-scale projects internationally and continues to
progress a large pipeline of c.10GW of both green and brownfield
project developments across global geographies.
Notes:
(1:) All financial data is unaudited at 30 June 2022, being the
latest date in respect of which NESF has published financial
information
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