TIDMNESF
RNS Number : 4105T
NextEnergy Solar Fund Limited
25 March 2021
LEI: 213800ZPHCBDDSQH5447
25 March 2021
NextEnergy Solar Fund Limited
("NESF" or the "Company")
NextEnergy Solar Fund reaches c.150MWp UK subsidy-free
development target
NextEnergy Solar Fund, the solar power renewable energy
investment company, is delighted to announce that it has
successfully reached its subsidy-free development target of
c.150MWp, through two newly approved subsidy-free development
assets. Both assets are currently being prepared for construction
and are expected to be energised in early 2022.
The assets have an approximate investment value of GBP45m and
comprise:
-- Whitecross, a 124-acre solar project, based in Lincolnshire
with an installed capacity of c.35.3MWp
-- Hatherden, a 198-acre solar project, based in Hampshire with an installed capacity of c.50MWp
The two assets will cover the yearly electricity demand for
approximately 25,000 UK households. NESF has selected Whitecross
and Hatherden from its development portfolio based on the assets'
attractive forecast financial returns and their relative near-term
energisation.
NESF's early entry into the UK subsidy-free market has shown its
ability to develop attractive value-accretive opportunities and has
allowed NESF to establish its expertise and leadership position in
this space. Through NextEnergy Capital's ("NEC's") specialist
energy sales desk, NESF's subsidy-free portfolio will benefit from
active hedging and greater trading flexibility, thereby maximising
risk-adjusted returns for shareholders.
Smaller Related Party Transaction
Having achieved its target subsidy-free capacity of c.150MWp,
NESF is looking to divest any residual development risk and has
agreed to divest 16 development projects (not in construction or in
operation) from its subsidy-free pipeline. The identified projects
will be sold to a subsidiary of NextPower Development Ltd
("NextPower"). The divestment amounts to a combined consideration
of c.GBP5.6m and will result in NESF receiving an attractive return
on the capital invested into this development activity. This
follows NESF's announcement in May 2020 regarding the sale of two
subsidy-free projects under development (not in construction or in
operation) with a capacity of 115MW to NextPower for a combined
total consideration of GBP11.5m.
NextPower and its subsidiaries are under the common control of
the wider NEC Group along with NextEnergy Capital Limited
(Investment Adviser to NESF) and NextEnergy Capital IM Limited
(Investment Manager to NESF) and as such are related parties of the
Company. Based on the amounts involved, this transaction
constitutes a smaller related party transaction as set out in
Listing Rule 11.1.10R.
NESF may sell further subsidy-free projects from its pipeline to
subsidiaries of NextPower. All related-party disposals are at the
Board's discretion and comply with the FCA's Listing Rules. There
are no exclusivity arrangements in place between NESF and any
member of the NEC Group in relation to this transaction or future
disposals.
Kevin Lyon, Chairman of NextEnergy Solar Fund commented:
"With the investment approval of Hatherden and Whitecross, both
exciting subsidy-free assets of scale, NESF has reached its target
of c.150MWp of subsidy-free assets in the portfolio. The divestment
is a result of NESF having achieved this target and reducing
exposure to any further development risk at this time. 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, CEO of NextEnergy Capital Group,
commented:
"Reaching the c.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."
-End-
For further information:
NextEnergy Capital Group 020 3746 0700
Michael Bonte-Friedheim ir@nextenergysolarfund.com
Aldo Beolchini
Ross Grier
Peter Hamid (Investor Relations)
Cenkos Securities 020 7397 8900
James King
William Talkington
Shore Capital 020 7408 4090
Anita Ghanekar
Sarah Mather
Fiona Conroy
Camarco 020 3781 8334
Owen Roberts
Eddie Livingstone-Learmonth
Apex Fund and Corporate Services (Guernsey)
Limited 01481 735 827
Nick Robilliard
Notes to Editors(1) :
About NextEnergy Solar Fund
NextEnergy Solar Fund is a renewable energy infrastructure
investment company that currently invests in operating solar power
plants in the UK and Italy. The Company may invest up to 30% of its
gross asset value in non-UK OECD countries, 15% in private equity
structures, and 10% in standalone energy storage.
NESF has a diversified portfolio comprising 92 operating solar
assets, primarily on agricultural, industrial, and commercial
sites, with a combined installed power capacity of c.813MW.
As at 31 December 2020, the Company had gross assets of GBP1,001
million, of which 88% was invested in the UK, and net assets of
GBP591 million. The majority of long-term cash flows from its
investments are inflation-linked.
NESF's investment objective is to provide ordinary shareholders
with attractive risk-adjusted returns, principally in the form of
regular dividends, by investing in a diversified portfolio of
primarily UK-based solar energy infrastructure assets. The dividend
is payable quarterly, and the Company has announced a dividend
target for the year ending 31 March 2021 of 7.05p per ordinary
share.
For further information on NESF please visit
nextenergysolarfund.com
Commitment to ESG
NESF is committed to ESG principles and responsible investment
which make a meaningful contribution to reducing CO2 emissions
through the generation of clean solar power. NESF will only select
investments that meet the requirements of NEC Group's Sustainable
Investment Policy. Based on this policy, NESF benefits from NEC's
rigorous ESG due diligence on each investment. NESF is committed to
reporting on its ESG performance in accordance with the UN
Sustainable Development Goals framework and the EU Sustainable
Finance Disclosure Regulation.
NESF has been awarded the London Stock Exchange's Green Economy
Mark and has been designated a Guernsey Green Fund by the Guernsey
Financial Services Commission.
NESF's sustainability-related disclosures in the financial
services sector in accordance with Regulation (EU) 2019/2088 can be
accessed on the ESG section of both the NESF website (
nextenergysolarfund.com/esg/ ) & NEC Group website (
nextenergycapital.com/sustainability/transparency-and-reporting/
).
About NextEnergy Capital Group ("NEC Group")
NESF is managed by the NextEnergy Capital Group, a specialist
solar investment manager, which has a strong track record in
sourcing, acquiring, and managing operating solar assets. NEC Group
is a leading player in the global solar investment sector and has
over 190 team members with offices in UK, Italy, India, and the USA
and assets under management of over $2.3bn across three
institutional funds.
NextEnergy Capital Group donates 5% of its net annual profits to
NextEnergy Foundation. NextEnergy Foundation is an international
charity that was founded in 2016. Its mission is to participate
proactively in the global effort to reduce carbon emissions,
provide clean power sources in regions where they are not yet
available, and contribute to poverty alleviation.
For further information on NEC Group please visit
nextenergycapital.com
For further information on NextEnergy Foundation visit
nextenergyfoundation.org
About WiseEnergy
WiseEnergy is NEC Group's specialist operating asset management
division. NESF is differentiated by its access to WiseEnergy, which
has provided operating asset management, monitoring, technical due
diligence, and other services to over 1,500 utility-scale solar
power plants with an installed capacity in excess of 2.3GW.
For further information on Wise Energy please visit
wise-energy.com
([1]) Note: All financial data is as at 31 December 2020, being
the latest date in respect of which NESF has published financial
information
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