A solar infrastructure fund with NextEnergy Capital is the first private sector transaction made by the UK Infrastructure Bank.
At £500 million, the private 10-year solar infrastructure fund, NextPower UK ESG, will be the largest subsidy-free solar investment fund in the UK. It will be managed by NextEnergy Capital (NEC) a global leader in the solar infrastructure sector. Once the fund is fully operational it will have an expected generation capacity of 1GW from around 30 solar farms across the UK.
The UK Infrastructure Bank is providing financing to the initial seed assets of the fund – built and operational at sites in Llanwern in South Wales and Strensham, Worcestershire which together will have an installed capacity of 115MW – and plans to invest up to £250 million.
The Bank was launched in June to support infrastructure investment to help tackle climate change and boost regional and local economic growth across the UK. The investment marks a first private sector transaction for the Bank.
Helen Whately MP, Exchequer Secretary to the Treasury, said:“It’s great to see the UK Infrastructure Bank striking another deal, which will help power thousands of homes across the UK with clean energy and create green jobs.”
“We are investing billions through the bank in important projects across the UK to drive growth and level up opportunities.”
John Flint, CEO of UKIB, said: “As this is the first deal for the UK Infrastructure Bank to leverage private sector investment, it is an important milestone for us. I am delighted that the Bank is able to play a role in the development of subsidy-free solar energy for the UK.”
Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Capital, said, “The launch of NextPower UK ESG marks an important milestone in bringing together capital from both the private and public sector to fund the next the phase of evolution in the UK solar PV sector. Unsubsidised new-build solar projects represent an attractive investment opportunity, both in financial investment returns and in the pursuit of societal objectives such as addressing climate change and improving biodiversity in the UK. “