UK solar power fund secures £733m investment through participation from local government pension schemes
NextPower UK Successfully Raises £733 Million for Solar Projects
NextPower UK, the largest private fund dedicated to new-build solar projects in the UK, has successfully closed a fundraising round at an impressive £733 million. This figure represents a 50% oversubscription of its original target size.
The fund's success in raising capital is attributed to strong investor confidence, bolstered by favourable government policy. Notably, the UK Government's recent decision to drop plans for 'zonal pricing' in electricity markets has reduced uncertainty for renewable energy investors, creating a more favourable investment climate.
NextPower UK's operations are managed by WiseEnergy®, the asset management arm of NextEnergy Group. With experience managing over 1,500 solar power plants globally and a total capacity exceeding 3.4 GW, WiseEnergy is a leading specialist in solar operations.
The fund plays a crucial role in supporting the UK's Clean Power 2030 ambitions by actively deploying capital into new-build solar farms. This expansion of renewable energy capacity is essential for meeting ambitious decarbonization targets and energy security objectives.
Recent developments include NextPower UK's acquisition of its fifteenth asset, increasing its portfolio capacity to 731MW. Notable assets under its management include the UK's largest operating solar asset, Llanwern solar farm.
Investors in the fund include several local government pension pools, such as LGPS Central and Border to Coast, as well as international investors seeking to access the growth landscape for new-build solar PV in the UK.
NextPower UK is managed by NextEnergy Capital and made its first distribution to investors in September 2023, just 13 months after its launch. To date, the fund has deployed over 70% of its committed capital from investors.
The UK's National Wealth Fund also invested £250m into NextPower UK on a match-funding basis. The NPUK fund is one of Border to Coast's earlier infrastructure allocations from its diversified Climate Opportunities vehicle.
As a 10-year closed-end private fund classified as an article 9 fund under the EU Sustainable Finance Disclosure Regulation, NextPower UK is a cornerstone private investment vehicle in the UK's transition to a sustainable, low-carbon power system. Its success underscores the growing interest in renewable energy investments and the UK's potential as a hub for such projects.
- The success of NextPower UK's £733 million fundraising round for solar projects highlights the increasing interest in renewable energy investments in the UK.
- The UK Government's recent decision to drop plans for 'zonal pricing' in electricity markets has contributed to a more favorable investment climate for renewable energy projects.
- NextPower UK's operations are managed by WiseEnergy®, a leading specialist in solar operations with experience managing over 1,500 solar power plants globally.
- The fund plays a crucial role in supporting the UK's Clean Power 2030 ambitions by deploying capital into new-build solar farms, expanding renewable energy capacity, and meeting decarbonization targets.
