NextPower UK ESG has delivered exceptional progress and financial results in its maiden year
London, October 12, 2023 – The success of NextPower UK ESG’s first year is attributable to the swift deployment of capital that generated attractive cashflows starting just seven weeks after the fund’s first close with the acquisition of two operational seed assets, Llanwern, (South Wales, 75MW), and Strensham (Worcestershire, 40MW). Since then, NPUK ESG has gone on to successfully acquire a further seven utility scale solar assets giving NextPower UK ESG a diversified portfolio of nine assets with a capacity of 416MW.
NPUK ESG is on track to achieve or exceed its targeted return profile of an unlevered 9-11% gross IRR with cash yields of 4-6%. Once fully deployed having constructed approximately 2GW in new solar generation capacity, NPUK ESG will provide enough clean energy to power around 500,000 UK households or offset nearly 200,000 carbon-emitting cars on the road each year, making a significant ESG impact in the UK.
Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group, said:
“NextPower UK ESG continues to go from strength to strength having made significant progress since its first close some 12 months ago. The fund has already allocated c.60% of its £595m committed capital, acquired 416MW across nine UK solar assets, and made its first distribution of c.10% to investors. The NextPower UK ESG team is making good progress on the construction of the portfolio and the fund continues to attract interest from investors around the world, with several in advanced due diligence with the next close scheduled for the end of the year.
Our team continues to pursue further acquisition opportunities for NPUK ESG, and we expect to continue our capital deployment progress rapidly. One of our key objectives is to rapidly build out new solar power generation capacity in the UK, and we are on track to achieve that target.
NPUK ESG’s success cements our Group’s track record in securing particularly attractive investment opportunities in the solar infrastructure sector and delivering market-leading financial returns to our investors.”