NextEnergy Capital Announces Further Close for NextPower V ESG
London, March 7th, 2024 – NextEnergy Capital is delighted to announce a further capital commitment of $100 million to its fifth strategy, NextPower V ESG (“NPV ESG”). NPV ESG is an OECD-focused solar and battery storage strategy targeting $1.5 billion with a $2 billion hard cap that has secured $580 million in total commitments to date.
The additional capital of $100 million has been committed by a European pension fund, joining existing NPV ESG investors KLP, a German occupational pension fund and a large Nordic pension fund. NPV ESG expects to welcome further capital in short order, with several investors currently active in due diligence.
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, establishing an operational track record and divesting the portfolio at the end of the fund’s holding period in 2033. 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 has started its investment cycle with a c.100MW utility-scale solar project under construction in Highland County, Florida, USA, and has several other investment opportunities from its 18GW pipeline under exclusivity that are expected to close shortly. NPV ESG’s pipeline includes projects in Spain, Poland, Italy, Canada, and the US.
Upon reaching its investment ceiling and delivering 4.5GW, NPV ESG is forecasted to generate enough clean energy to power the equivalent of up to 1,119,186 households per year and avoid an estimated fossil fuel consumption of up to 218.1 million m3 of natural gas annually. This underscores NEC’s commitment to sustainable investing and aligns with its mission of leading the transition to clean energy, while generating attractive financial returns for its investors.
Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group, said:
“I am very pleased to announce a further close for NPV ESG, with a commitment from a new institutional investor for our strategies. This additional capital coming into the fund demonstrates NextEnergy Capital strategies coming to the fore as we continue to expand our reach as the go-to specialist solar+ investment manager focused on OECD markets. Since its first close last year the fund has now received total commitments of $580 million to date, and its inaugural asset in the USA has started construction and secured a long-term power purchase agreement.
“NPV ESG focuses on new-build opportunities, contributing to the decarbonisation of the power generation sector, while lowering power prices and increasing energy independency in our target markets. NPV ESG also makes a significant contribution to local biodiversity, communities and natural capital enhancements. The fund continues to draw significant interest from investors worldwide. I am thrilled to continue our global fundraising efforts and look forward to announcing further investor commitments to NPV ESG and further investments shortly.”
Shane Swords, NextEnergy Capital’s Managing Director and Global Head of Investor Relations, said:
“We are delighted to welcome a new investor into NextPower V ESG, which further accelerates the fund’s positive momentum and growth. It’s wonderful to see NextEnergy Capital’s exemplary track record, extensive experience in solar, and vast opportunities in the solar sector being recognised. NextPower V ESG is our largest international fund to date which will provide a real impact and tangible benefits to the communities and countries where its assets are located, whilst also providing an opportunity for investors looking for strong and stable renewable energy returns. This additional capital close is a clear indication to the market that, despite the current environment, investors are still seeking a specialist investment manager with a proven track record of successful delivery, deployment, and superior return generation.”
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