TIDMNESF
RNS Number : 4142R
NextEnergy Solar Fund Limited
01 March 2023
LEI: 213800ZPHCBDDSQH5447
01 March 2023
NextEnergy Solar Fund Limited
("NESF" or the "Company")
GB Capacity Market Contracts & 50MW Battery Update
NextEnergy Solar Fund, the specialist solar+ fund, is pleased to
announce that Camilla, its first standalone 50MW battery storage
project to be energised under its successful joint venture with
EelPower, has been selected to provide battery storage capacity in
the UK Government's latest Capacity Market Auction.
The Capacity Market contracts successfully secured in the
February 2023 T-1 and T-4 auctions run by the Department of Energy
Security and Net Zero are expected to earn Camilla GBP557k over
winter 2023 and GBP576k per annum over 2026 to 2032, adding to
Camilla's existing Capacity Market contract for delivery in winter
2025-26 worth GBP305k. Under these agreements, Camilla will be
ready to support the electricity grid during stress events in
winter 2023 and for six winters from October 2026. The contracts
will provide a stable and complementary foundation for the
operation of the asset, albeit representing only a small percentage
of the total revenues the asset is expected to generate in the
relevant years.
Camilla's success in the Capacity Market Auction exemplifies the
importance of deploying energy storage at scale alongside solar and
other grid-scale renewable technologies, strengthening the UK's
energy security and supporting the transition to a net-zero carbon
economy. The Company's growth strategy anticipated this evolution
of the market and the Company has well-developed plans to introduce
additional energy storage to its portfolio.
About the Capacity Market
The Capacity Market Auction is part of the Government's
Electricity Market Reform package aimed at securing the nation's
electricity supply through payments to generators and flexible
assets to ensure capacity is available as the UK transitions to a
grid dominated by intermittent renewable energy sources.
Camilla Update
Camilla is NESF's first standalone 50MW (100MWh) battery
project, located in Fife, Scotland where it is intended to benefit
from volatility driven by high Scottish wind capacity, low local
demand and constraints on the National Grid. Camilla phase 1 (50MW,
50MWh) is expected to be energised and grid connected in Q2 2023.
Works are progressing to schedule, with all battery storage units
now installed on site. Once energised, Camilla will immediately
provide one-hour duration services, with work ongoing to augment
towards two-hour duration (50MW, 100MWh) in due course.
Ross Grier, UK Managing Director of NextEnergy Capital
commented:
"We are pleased that NESF's Camilla battery has been selected
alongside other battery storage assets to provide essential
capacity to ensure the security of the nation's electricity supply.
We are proud to contribute to the UK's energy transition and look
forward to continuing our partnership with the Department of Energy
Security and Net Zero.
The project's success in securing these contracts highlights the
importance of battery storage in ensuring a stable and resilient
electricity grid. The initial energisation at one hour duration
allows the battery to capitalise on current market dynamics whilst
bringing forward the two hour duration will ensure the asset is
optimally placed to succeed as the UK's energy system evolves."
For further information:
NextEnergy Capital 020 3746 0700
Michael Bonte-Friedheim ir@nextenergysolarfund.com
Ross Grier
Stephen Rosser
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+ fund listed on the premium segment
of the London Stock Exchange and is a constituent of the FTSE250.
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
utility-scale solar energy and energy storage infrastructure
assets. The majority of NESF's long-term cash flows are
inflation-linked via UK government subsidies.
NESF currently has a diversified portfolio comprising of the
following:
Solar PV:
-- 99 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 and discussions are ongoing
with the local distribution network operator to confirm an
energisation date.
The NESF portfolio has a combined installed power capacity of
865MW (excluding NextPower III MW on an equivalent look-through
basis). NESF 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 assets.
As at 31 December 2022, the Company had an unaudited gross asset
value of GBP1,252m.
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 & NEC website.
About Eelpower
Eelpower Limited ("Eelpower") is a well-established
privately-held constructor-owner-operator which has pioneered the
delivery of grid-scale flexible battery assets, establishing the UK
electricity storage market. Since its launch in 2017, Eelpower has
delivered, owned and managed some of the highest-earning and
highest-availability storage assets in the UK.
www.eelpower.co.uk
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 ("NEC") 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 specialist solar(+)
fund, which is listed on the premium segment of the London
Stock Exchange. It currently has an installed capacity of
865MW spread among 99 individual operating assets in the
UK and Italy, comprising an unaudited gross asset value of
GBP1,252m. NESF is one of the largest listed solar and energy
storage 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 is a 10-year closed-ended private fund launched
in December 2021 targeting GBP500m. To date, NPUK has raised
total commitments of GBP5 95 m exceedin its target six within
six months of first close , with the UK Infrastructure Bank
providing cornerstone match-funding o f GBP250m.
-- NextPower V ESG ("NPV") is a private contracted OECD solar
strategy that offers investors the opportunity to earn strong
risk-adjusted returns from the solar PV infrastructure asset
class with a highly experienced team and a track record of
success in OECD-based solar deployment. The strategy will
primarily invest in OECD solar assets and adjacent technologies
(e.g. battery storage) in the target markets. NPV ESG is
targeting $1.5bn in size with a $2bn ceiling.
WiseEnergy (R)
WiseEnergy(R) is NextEnergy 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 31 December 2022, being
the latest date in respect of which NESF has published financial
information
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