NextEnergy Capital's subsidy-free solar fund reaches 3rd close

London-based NextEnergy Capital has reached the third close of its NextPower UK ESG (NPUK ESG) fund, described as the UK’s first private investment fund for unsubsidised solar projects, at GBP 595 million (USD 715.7m/EUR 670.7m).

The 10-year fund has exceeded its initial target of GBP 500 million, solar investment and asset manager NextEnergy Capital said on Monday.

NPUK ESG was launched in December 2021 with a hard cap of GBP 1 billion. Its first close was achieved in August 2022. So far the investment vehicle has secured commitments from UK and Middle East investors, including the UK Infrastructure Bank (UKIB), LGPS Central Limited, Merseyside Pension Fund and Brunel Pension Partnership. The third close was reached with commitments from existing investors Border to Coast Pensions Partnership and UKIB, which is acting as the cornerstone investor and will provide up to GBP 250 million on a match funding basis.

NPUK ESG will invest in new-build utility-scale, subsidy-free solar projects with power purchase agreements (PPAs) in the UK. It already has five projects in its portfolio totalling 269 MW.

(GBP 1.0 = USD 1.203/EUR 1.127)

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