NextEnergy Capital taps UK Infrastructure Bank for 1GW subsidy-free solar push

NextEnergy Capital’s 75MWp Llanwern project (pictured) in Wales was energised earlier this year. Image: NextEnergy Capital.

Solar investor and asset manager NextEnergy Capital Group (NEC) has secured backing from the UK Infrastructure Bank for a new fund that aims to raise £500 million (US$663 million) to invest in subsidy-free solar power plants in the UK.

Dubbed NextPower UK ESG (NPUK ESG), the ten-year infrastructure fund will be the UK’s largest subsidy-free solar investment fund, according to NEC, and will have 1GW of generation capacity from around 30 PV projects when it is fully operational.

The UK Infrastructure Bank, launched by the country‘s government in June, plans to invest up to £250 million in NPUK ESG on a match-funding basis with the private sector.

Marking the first private sector transaction for the bank, it is providing financing to the initial seed assets of the fund comprising two operational solar farms with a combined capacity of 115MW.

“The launch of NextPower UK ESG marks an important milestone in bringing together capital from both the private and public sector to fund the next phase of evolution in the UK solar PV sector,” said Michael Bonte-Friedheim, CEO of NEC.

Founded in 2007, NEC has solar assets under management of around US$2.9 billion, across three investment vehicles.

For more on this story, visit sister site Solar Power Portal.