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NextEnergy Solar Fund leads the way with low-risk yield and solar know-how

Last updated: 08:09 19 Mar 2024 GMT, First published: 09:24 06 Jan 2024 GMT

Snapshot

  • NextEnergy Solar reaches the 1 gigawatt landmark with new battery asset
  • NextEnergy Solar Fund's ESG strategy and deeper dive into the financials - ICYMI
  • NextEnergy Solar and Bluefield offer 'attractive' implied returns after de-rating, says Barclays
  • NextEnergy Solar Fund unveils significant solar farm energisations and growth prospects
NextEnergy Solar Fund -

About the company

About NextEnergy Solar Fund 

NESF is a specialist solar power 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 equity structures, and 10% in energy storage.

NESF currently has a diversified portfolio comprising of the following:

  • 99 operating solar assets across the UK and Italy (primarily on agricultural, industrial, and commercial sites)
  • A $50m commitment into NextPower III ESG (a private solar infrastructure fund providing exposure to operating and in-development international solar assets)
  • A 50MW co-investment into a Spanish solar project alongside NextPower III ESG, currently in construction
  • A 50MW standalone battery storage project in Fife, Scotland, currently in construction (part of a 250MW joint venture with Eelpower)
  • Two subsidy free UK solar ready-to-build projects (Hatherden 50MW & Whitecross 35MW)

The NESF portfolio has a combined installed power capacity of 865MW (excluding NextPower III MW on an equivalent look-through basis).

As at 31 December 2021, the Company had a gross asset value of £1,094 million, 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 a net asset value of £615million.                                              

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 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.

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 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 325 individual solar plants for a capacity in excess of 2.3GW 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, that is listed on the premium segment of the London Stock Exchange.  It currently owns 865MW spread among 99 individual assets in the UK and Italy, comprising a gross asset value of £1,094m.  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 to its investors in excess of 25%, versus a 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 ESG is a fund that provides a positive social and environmental impact to the countries it has and will invest into. NPIII has completed its fundraise with a total of $896m, including a SMA raised.  The target of the fund was $750m.
  • NextPower UK ESG ("NPUK ESG") is a private unlevered fund investing in greenfield subsidy-free solar projects, with PPA's, in the UK.  NPUK ESG was launched in December 2021.  The UK Infrastructure Bank is providing financing to the initial seed assets of the fund, and plans to invest up to £250m, half of the fund's total target fund size, on a match-funding basis.

WiseEnergy

WiseEnergy® 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 1,300 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. 

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.2.5GW of both green and brownfield project developments across global geographies.

 

How it is doing

19 Mar 2024

NextEnergy Solar Fund Ltd (LSE:NESF) has hit a milestone with Camilla, its first standalone 50MW energy storage project, now up and running. This achievement pushes NESF's capacity over the 1GW mark to 1,014MW.

Camilla, a 50MW lithium-ion battery set in Fife, Scotland, connected to the National Grid in December, is its first collaboration under a £300m joint venture with Eelpower Limited. The

The development coincides with recent advancements by the National Grid in enhancing battery dispatch capabilities and introducing new reserve products, offering additional revenue streams for newly operational assets like Camilla.

Last month, Camilla was awarded a contract in the National Grid ESO's T-1 Capacity Market Auction for the 2024/25 period, with a clearing price of £35.79 per kilowatt.

15 Mar 2024

NextEnergy Solar Fund Ltd has reached a "major milestone" with the energisation of its first two international solar co-investments in collaboration with NextPower III ESG (NPIII ESG).

The investments comprise a 210MW facility in Santarém, Portugal, and a 50MW asset in Cadiz, Spain, named Agenor. Together, these installations are projected to generate 445GWh of renewable electricity annually, sufficient to supply around 126,700 homes with green energy.

22 Nov 2023

NextEnergy Solar Fund Ltd (LSE:NESF) has unveiled a higher dividend at the half-year stage and anticipates this will increase over the coming months.

Reporting on the six months to September, NextEnergy announced a dividend of 4.18p per ordinary share, marking an increase from the 3.76p granted last year.

Insight: NextEnergy Solar Fund's ESG strategy and deeper dive into the financials -...

25 Nov 2023

In conversation with Proactive's Thomas Warner, Giulia Guidi, the ESG Manager at NextEnergy Capital, sheds light on the significant strides the company has made in its sustainability endeavours, particularly following the release of NextEnergy Solar Fund Ltd's detailed sustainability report.

This chat delves into NESF's strategic financial adjustments, asset management, and future plans, reflecting their commitment to balancing robust environmental, social, and governance (ESG) practices with strong investor returns in the dynamic energy sector.

What the brokers say

18 Aug 2023

Barclays says there are "attractive" implied portfolio returns on offer at NextEnergy Solar Fund Ltd (LSE:NESF) and Bluefield Solar Income Fund (LSE:BSIF).

The solar-focused investment trusts this past week both lowered their discount rates by 75 basis points, which impacted their net asset values by around 4% apiece. 

But with the sector shares having de-rated, analyst Conor Finn said, "we think implied returns are relatively attractive for predominantly operational UK portfolios.

What management says

18 Mar 2024

NextEnergy Capital Investment Director and UK Legal Counsel Stephen Rosser joins Proactive's Stephen Gunnion with details of NextEnergy Solar Fund's first two international solar co-investments in collaboration with NextPower III ESG (NPIII ESG).

Rosser oversees the daily operations of the NextEnergy Solar Fund Ltd (LSE:NESF), a part of the FTSE 250 index, working closely with the CEO, CIO, and the investment committee.

NextEnergy Capital recently announced the energisation of two solar farms in Europe, adding to the NextEnergy Solar Fund's installed capacity, now totalling 979 megawatts (MW). These farms are located in Santarém, Portugal (210MW) and Cadiz, Spain (50MW), marking a significant step in diversifying revenues and enhancing the fund's installed capacity.

NextEnergy Solar Fund unveils significant solar farm energisations and...

NextEnergy Capital Investment Director and UK Legal Counsel Stephen Rosser joins Proactive's Stephen Gunnion with details of NextEnergy Solar Fund's first two international solar co-investments in collaboration with NextPower III ESG (NPIII ESG). Rosser oversees the daily operations of the...

1 day, 3 hours ago