NextEnergy Solar Fund has announced plans to sell a 236MW portfolio of subsidy-free UK solar assets, the proceeds, saying it wants to “capture significant value” from the sale to be used to invest in “higher returning investment opportunities … such as energy storage”, reduce gearing and potentially buy back shares.
It has placed five solar farms – Hatherden, Whitecross, Staughton, The Grange and South Lowfield – on the market. It said it will retain two operational subsidy-free assets and “remains committed to its remaining subsidy-free solar pipeline”.
NESF said “Given the significant increase in interest rates in recent months, the Board anticipates using net proceeds from the Programme to reduce the amount of drawn revolving credit facilities where the company has exposure to the high interest rate environment in the near term.”
The Company has exclusivity over, or owns the project rights for, the majority of its pipeline of c.£500 million UK and international solar and storage assets. It owns development rights for a 250MW lithium-ion battery project in the East of England, which when constructed will be one of the UK’s largest operational standalone battery storage assets.