NextEnergy Capital confirms further $100m commitment to solar-storage fund



March 11, 2024

NextEnergy Capital is delighted to announce a further capital commitment of $100 million to its solar and storage fund NextPower V ESG.

NPV ESG is an OECD-focused solar and battery storage fund targeting $1.5 billion with a $2 billion hard cap that has secured $580 million in total commitments to date.

The additional capital of $100 million has been committed by a European pension fund, joining existing NPV ESG investors KLP, a German occupational pension fund and a large Nordic pension fund. A NPV ESG statement said the fund “expects to welcome further capital in short order, with several investors currently active in due diligence”.

The statement added: “NPV ESG’s investment strategy targets the solar and infrastructure sector in carefully selected OECD markets, with the objective of building significant portfolios in each target market, establishing an operational track record and divesting the portfolio at the end of the fund’s holding period in 2033.”

NPV ESG has started its investment cycle with a 100MW utility-scale solar project under construction in Highland County, Florida, USA, and has “several other investment opportunities from its 18GW pipeline under exclusivity that are expected to close shortly”, the statement said. NPV ESG’s pipeline includes projects in Spain, Poland, Italy, Canada, and the US.

Michael Bonte-Friedheim, CEO and founding partner of NextEnergy Group, said: “I am very pleased to announce a further close for NPV ESG, with a commitment from a new institutional investor for our strategies.  This additional capital coming into the fund demonstrates NextEnergy Capital strategies coming to the fore as we continue to expand our reach as the go-to specialist solar and investment manager focused on OECD markets.  Since its first close last year the fund has now received total commitments of $580 million to date, and its inaugural asset in the USA has started construction and secured a long-term power purchase agreement.”

Shane Swords, NextEnergy Capital’s managing director and global head of investor relations, added: “We are delighted to welcome a new investor into NextPower V ESG, which further accelerates the fund’s positive momentum and growth.  It’s wonderful to see NextEnergy Capital’s exemplary track record, extensive experience in solar, and vast opportunities in the solar sector being recognised.  NextPower V ESG is our largest international fund to date which will provide a real impact and tangible benefits to the communities and countries where its assets are located, whilst also providing an opportunity for investors looking for strong and stable renewable energy returns.  This additional capital close is a clear indication to the market that, despite the current environment, investors are still seeking a specialist investment manager with a proven track record of successful delivery, deployment, and superior return generation.”