London, September 16th, 2021 – NextPower III ESG (“NPIII ESG”), the international solar fund of NextEnergy Capital (“NEC”), is pleased to announce an agreement to acquire a 42.3MW solar PV project portfolio in Poland.
This marks NPIII ESG’s first acquisition in Poland. Completion is expected to occur in Q4 2021 once all assets are constructed and energised.
The solar PV project portfolio has been awarded a Contract for Difference (“CfD”) through the 2019 renewable energy auction, as a result, the project benefits from c.100% regulated revenues over 15 years (CPI linked).
The portfolio was developed by Green Genius (part of Modus Group), a leading European developer of renewable energy projects, which has more than 1.5 GW of projects in various stages of development.
This acquisition will bring NPIII ESG’s portfolio to an installed capacity of 530MWp and continues to demonstrate NextEnergy Capital’s ability and skill to identify and acquire attractive investment opportunities in new and existing jurisdictions.
NPIII ESG is a fund that provides a positive social and environmental impact to the countries it has and will invest into. When NPIII is fully invested at US$750m across an installed capacity of circa 2.5GW, it can expect to deliver an impact of estimated annual avoided emissions of circa 2 million tCO2e each year, which on a conservative basis is the equivalent to providing energy for more than circa 1.3 million homes per year.
Once operational, the portfolio will produce enough clean electricity per year to power the equivalent of circa 24,200 households or remove 11,600 carbon-emitting cars off the road.
Filinto Martins, Managing Director and Head of NPIII ESG, commented:
“We are delighted to announce this transaction marking NextPower III’s first acquisition in Poland, a market that provides excellent opportunities for our growth strategy. I am excited that NextPower III ESG continues to rapidly expand its portfolio in carefully selected geographies as we continue to increase our global solar asset footprint.”
Aldo Beolchini, Managing Partner and NextEnergy Capital’s Chief Investment Officer, commented:
“Poland is facing significant decarbonisation challenges with its energy mix dominated by coal, which generates two thirds of the supply. The acquired portfolio gives NextPower III and its ESG focused investors an excellent opportunity to contribute to addressing this challenge, whilst adding to the fund portfolio’s size, geographical, and revenue diversification.”
NPIII ESG is a private fund exclusively focused on the international solar infrastructure sector, principally targeting projects in carefully selected OECD countries, including the US, Portugal, India, Spain, Chile, Italy and Poland.
NPIII has a significant portfolio of further acquisition targets; there are currently two portfolios under exclusivity for an installed capacity of 315MW and a further 1.3GW in the immediate pipeline. The investment team continues to focus its efforts on expanding the portfolio, having to date reviewed over 35GW of solar projects in the selected geographies.
During the third and fourth quarter of 2021 acquisitions are expected to bring the Fund’s total installed capacity to nearly 1GW.
The Fund continues to enjoy significant momentum across its planned acquisition pipeline and its fundraising activities.
NPIII ESG is a closed-ended 10-year fund that has already raised US$530million. The target of the fund is $750million, with a hard cap target of US$1billion. The fundraising period closes at the end of 2021.
NextEnergy Capital Group
NEC was founded in 2007 to become the leading investment manager in the solar sector. Since its inception, it has been active in the development, construction and ownership of solar assets. It currently has solar assets under management of c.US$2.8bn, across three investment vehicles. To date, NEC has invested in over 240 individual solar plants for an installed capacity in excess of 1GW.
NEC manages three investment vehicles: two private funds, NextPower III ESG and NextPower II, and one listed investment company, NextEnergy Solar Fund Limited. Information on NextPower II and the NextEnergy Solar Fund are as follows:
- NextPower II (“NPII”) is a private fund investing in operating solar power plants, focused on Italy. Its strategy is to consolidate the substantial, highly fragmented Italian solar market, and has commitments of €232 million, secured from Prudential Assurance Company, a subsidiary of M&G Prudential, and including Pantheon. NPII currently owns 105 solar plants in Italy comprising c.140MW and is among the ten largest solar asset owners in Italy.
- NextEnergy Solar Fund (“NESF”) is a solar infrastructure investment company focused on the UK and other OECD countries, that is listed on the premium segment of the London Stock Exchange. It currently owns 893MW spread among 99 individual assets in the UK and Italy, comprising a gross asset value of £1,058m. As at 13 September 2021, NESF’s market capitalisation was c.£580m. NESF is one of the largest listed solar energy investment companies in the world.
WiseEnergy® is NextEnergy Capital Groups active 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 1,300 utility-scale solar power plants with an installed capacity in excess of 2.2GW. WiseEnergy clients comprise leading banks and equity financiers in the energy and infrastructure sector.
NextPower Development is NextEnergy Capital Groups 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.2.5GW of both green and brownfield project developments across global geographies.
For further information:
NextEnergy Capital Limited +44 (0) 203 746 0700
Shane Swords (Head of IR)
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