NextEnergy UK I (NEUK I) has rapidly directed capital into essential energy infrastructure in line with the Clean Power 2030 initiative. Over the past year, the Fund has more than doubled its operational capacity, now totalling 380MW. NEUK I remains on course to reach its target of 1,000MW (1GW) in operational solar PV and energy storage, making a significant contribution to the UK’s renewable energy and energy security objectives.
NextPower UK ESG: £733 million fundraising exceeds expectations
Launched in August 2022 as a 10-year fund, NEUK I closed at roughly 50 percent above its target size, raising £733 million. The fund is backed by several LGPS Pools and the National Wealth Fund. With over 95 percent of capital now allocated, NEUK I is nearing full deployment, encompassing a portfolio of 19 assets and maintaining visibility over its remaining pipeline and surplus.
CfD as financing instrument
The Fund is positioned to capture the UK’s market opportunities, particularly as the Clean Power 2030 initiative targets around 50GW of solar PV capacity by 2030. NEUK I draws on NextEnergy Capital’s strong UK track record and delivers expertise across the full solar value chain, from project development and construction to investment.
Goldbeck combines biodiversity and clean energy in new UK solar project
NEUK I’s long-term contracted revenue strategy is underpinned by more than 76 percent of its solar portfolio securing long-term offtake agreements, including new Contracts for Difference (CfD) for newly built assets. CfDs are the UK government’s main support mechanism for low-carbon electricity generation, providing investors with de-risked, attractive cash yields throughout the Fund’s lifespan. (hcn)
