NextEnergy Solar Fund Ltd reaches key milestone for subsidy-free

On Mar 25, 2021

The solar project investor and developer will now divest its residual development risk – selling 16 pre-construction projects from its subsidy-free portfolio for £5.6mln

Ltd () celebrated as it hit a key milestone, reaching its subsidy-free development target of 150 megawatts peak (MWp) generation.

It comes with approval of two new solar developments, Whitecross and Hatherden, which are now being prepared for construction.

They are expected online by early 2022.

Together Whitecross and Hatherden will generate enough energy to power around 25,000 households.

Whitecross spans some 124 acres in Lincolnshire and will have an installed capacity of 35.3MWp, whilst at 198 acres and 50MWp the Hatherden project in Hampshire will be larger.

READ: NESF picks up UK solar assets in £64mln deal

NextEnergy noted that its early entry into the UK subsidy-free market has shown its ability to develop attractive value-accretive opportunities and seen the company establish expertise and leadership in this space.

With the 150 MWp target now achieved the company is now divesting 16 pre-construction development projects from its subsidy-free portfolio to an associated company, NextPower Development, which is also part of the NEC Group of companies.

NextEnergy Solar will receive £5.6mln for the assets. It follows a similar transaction which last year saw the sale of two pre-construction projects with designed capacity of 115MW for £11.5mln in cash.

“The divestment is a result of NESF having achieved this target and reducing exposure to any further development risk at this time,” said Kevin Lyon, NextEnergy Solar Fund chairman.

“This allows NESF to increase its focus on investment opportunities both in and outside the UK in line with the expansion of NESF’s investment policy approved by shareholders last year.”

Michael Bonte-Friedheim, NextEnergy Capital Group chief executive, added: “Reaching the 150MWp target of subsidy-free assets in development is truly a milestone achievement for NESF, as we have shown the market that we have achieved what we set out to do.

“NESF has firmly demonstrated its leadership in the UK solar market and continues to achieve superior technical and operational performance.

“In parallel, NESF continues to focus on further growth opportunities in the UK and internationally.”