NextEnergy Capital pockets USD 480m for fifth solar-storage fund

London-based NextEnergy Capital has achieved first close for its fifth investment fund, raising USD 480 million (EUR 440m) for solar and battery storage projects in OECD countries.

The financing round for NextPower V ESG attracted USD 330 million in direct commitments and received USD 150 million in co-investment allocations. German occupational pension fund KLP and a large Nordic pension fund were among the investors, NextEnergy Capital said on Tuesday, adding it is in talks with additional investors as it prepares for a close of the fund later this year.

NextPower V ESG was launched in January with the aim of securing commitments of USD 1.5 billion with a hard cap of USD 2 billion. The private investment vehicle will pursue solar assets and complementary technologies such as energy storage in OECD (Organisation for Economic Co-operation and Development) countries, focusing on markets where NextEnergy Capital has previous experience.

NextPower V ESG will invest for 10 years and is targeting mid-double-digit returns from projects focused in Europe, North America and Chile. It has a pipeline of identified projects totalling over 14 GW.

Provided that the entire targeted amount is secured, the fund expects its assets to produce clean energy for up to 750,000 homes annually.

(USD 1.0 = EUR 0.917)

Choose your newsletter by Renewables Now. Join for free!