NextEnergy Solar Fund Ltd (LSE:NESF) has made its second international co-investment, taking a stake in a solar project in Portugal.
The company is paying around €22.5mln to NextPower III ESG for a 13% stake in a 210-megawatt project under construction in Santarém.
The project is expected to come online in the second quarter of 2023, after which it is expected to benefit from a long-term power purchase agreement (PPA) for the sale of electricity that is currently being negotiated with a robust creditworthy counterparty.
The co-investment will be funded using headroom available within the company's revolving credit facilities. NextEnergy (NESF) continues to pursue a strong pipeline of domestic and international solar opportunities on a direct and co-investment basis, as well as standalone and co-located battery assets in the UK, the company said.
"Santarém marks another successful co-investment for NESF, demonstrating the benefits of being an investor in NextPower III ESG, with access to unique co-investment opportunities that only private sector funds can offer. Santarém broadens NESF's geographic reach into Portugal, a market where NextEnergy Capital, NESF's investment advisor, already has extensive on-the-ground experience. Portugal has one of the highest irradiation factors in Europe and is an attractive market for solar,” said Michael Bonte-Friedheim, the chief executive officer of NextEnergy Group.