NextEnergy Capital, Investment Manager for NextEnergy Solar Fund (NESF) and Anglian Water Services have, following a competitive tender process, have signed an agreement through which NextEnergy Capital will design, build, operate, and own over 35MW of solar assets and sell the power directly to Anglian Water through private wire for a 25-year period. The solar assets will be financed and owned by NESF, an investment company focused on the UK solar sector with over 700MWp of operating plants. For more information see the IDTechEx report on Distributed Generation: Minigrid Microgrid Zero Emission 2018-2038.
The deal is the largest on-site solar PV generation tender to date in the UK solar market and shows the continued growth of the commercial and industrial solar generation landscape. NextEnergy Capital is a leader in delivering subsidy-free installation of solar generation, and views commercial and industrial areas as key growth markets.
Anglian Water has set the ambitious target of becoming a net zero carbon organisation by 2030 by finding more sustainable ways of meeting an increasing demand for services created by a growing population, whilst taking into account the effects of climate change in the region. This is a huge challenge and generating renewable energy is a vital part of delivering against this significant ambition.
As a result of this partnership, NESF will own and operate a portfolio of solar sites on Anglian Water's operational sites that will help Anglian Water achieve its ambitious target of net zero carbon by 2030. This partnership comes in the month after water industry regulator Ofwat noted that Anglian Water is one of the sectors' leading companies in delivering services for customers.
Ross Grier, NextEnergy UK Managing Director said: "We are delighted to be working with Anglian Water as it extends its solar roll-out and ambitious targets of achieving Net Zero by 2030. This is an excellent fit for us, adds long-term contracted revenues to NESF's portfolio and supplements the growth of our subsidy- free build programme. We remain excited by the growth of zero-subsidy generation, and the diverse opportunities that the UK solar market will present in the coming years."
David Riley, Anglian Water Head of Carbon Neutrality said: "We never stop looking for ways to improve what we do, to keep us ahead in a changing world, and our renewables ambition will see us integrate solar and energy storage to help us in our journey to becoming a more sustainable business. This partnership with NextEnergy is a win-win for us and our customers and takes us a step closer to becoming a net zero carbon organisation. Ours is the driest region in the UK, particularly vulnerable to climate change and one of the fastest growing parts of the country. As we tackle these challenges, we are working hard to reduce our carbon footprint including increasing the amount of renewable energy we generate to help power our operations. We look forward to working with Next Energy UK as we deliver our programme and deliver further benefits for our customers, the community and the environment."
NextEnergy Capital ("NEC") Group is the leading specialist international investment and asset manager exclusively focused on the solar sector. Founded in 2007, NEC has over 160 employees across six offices, including London, Milan, Hyderabad, New York, Luxembourg and Guernsey. Since inception it has acquired nearly 190 solar assets and NextEnergy Capital Limited currently manages c.$1.6bn in equity dedicated to the solar infrastructure sector across its three institutional funds (NextPower III, NextPower II and NextEnergy Solar Fund). Including the acquisition announced recently, the total installed solar capacity NextEnergy Capital has invested into exceeds 1,000 MWp.
In Italy, NEC manages NextPower II, a private equity fund investing in operating solar power plants, aimed at consolidating the highly fragmented Italian solar market, with commitments of €232m. NextPower II currently owns 79 solar plants in Italy comprising c.117 MWp and is among the ten largest solar asset owners in Italy.
In the UK, NextEnergy Solar Fund is listed on the London Stock Exchange, in the FTSE250 index and is the largest listed solar infrastructure company in Europe. It has amassed a portfolio of 90 operational sites, with a total capacity of 705 MWp. Of the 90 sites, 7 are in Italy and there are 3 portfolios of UK rooftop assets. It is currently constructing a subsidy-free 50MWp solar project in the UK, following the grid connection of its first subsidy-free project of 5.4 MWp in August 2019.
NextPower III is a private solar infrastructure fund established to invest in the international solar sector, specifically to fund the construction and long-term ownership of solar power plants as well as the acquisition of operating solar plants. NextPower III's target markets comprise mainly OECD and OECD Key Partner countries. It has initial commitments of c.US$160m, secured at its first close in November 2018, and a target size of US$750m. NextPower III announced the acquisition of a 102.5 MWp operating plant in North Carolina, USA, in October 2019.
Further information on NPIII, NEC Group and WiseEnergy is available at www.nextenergycapital.com and www.wise-energy.eu
For further information:
NextEnergy Capital Limited
Michael Bonte-Friedheim Aldo Beolchini
About Anglian Water
+44 203 746 0700
Anglian Water supplies drinking water to 4.3 million customers across the East of England and collects and treats used water from over 6 million people. We operate within the largest geographical region of England and Wales. Water is our business. It's our job to handle it with care and balance the needs of our customers with those of the environment around us.
Our ethos is 'Love Every Drop', because it's what we do. Every drop of water is precious, and we believe it's everyone's responsibility to look after it. We're constantly discovering new ways to keep ahead of a changing world, by planning for the future, and exploring new ideas to meet our customers' individual needs today and tomorrow.
For more information please contact the Press Office on 0871 677 0123
Source: Engine MHP