NextEnergy joins Santander to build UK’s largest solar farm

Two subsidy-free solar projects are to be built with debt financing in an agreement between NextEnergy Capital Group (NEC) and Santander.

The bank, which already provides debt financing to the renewable energy sector, will provide a non-recourse debt financing structure of £100 million to cover the investment in the two projects.

One plant, at Llanwern in South Wales, will be the largest solar farm in the UK to date, at 75MW. The  other plant is Strensham in Worcestershire, will be rated at 40 MW.  Both plants are expected to connect to the grid in the final quarter of 2020 and bith will be contracted with power purchase agreements.

NEC has a long-term hold strategy for these projects and plans to move them to a new subsidy-free private fund, NextPower UK ESG, which will target a significant number of new-build subsidy-free solar projects focused exclusively on the UK.

Chief executive and founding partner Michael Bonte-Friedheim said: “It’s a pleasure to announce this innovative new financing structure and the commencement of construction on further critical energy generating assets to be delivered on a subsidy-free basis.

“…The ability for NEC to work with its partner Santander to implement this transaction considering the extremely challenging backdrop of COVID-19 lockdown shows the strength and depth of the teams involved, coupled with the resilience of solar as an asset class in these times.”

Further reading

Expect failures in corporate PPAs, says solar investor

Solar investment fund raises portfolio to 691MW

NextEnergy extends solar acquisitions

Greencoat acquires PV portfolio from BlackRock/Lightsource partnership

NextEnergy starts up second subsidy-free solar farm, plans to take year’s rollout to 150MWp

Anglian Water sites to host 35MW of PV in step towards net zero goal

Thrive picks up new subsidy-free wind project

Second grid-scale battery gets go-ahead near Hull

MeyGen floats data centre development to provide local customer for Caithness tidal turbines

Work starts at subsidy-free wind farm in Scotland

Renewables to join Capacity Market

Warrington Borough Council announces major investment in PV to power local services

Leave a Reply

Your email address will not be published. Required fields are marked *