NextEnergy solar-storage OECD fund raises USD 745m

London-based NextEnergy Capital has achieved a second close on its fifth investment fund, NextPower V ESG, which targets solar and battery storage projects in OECD countries, with USD 745 million (EUR 696.3m) in total financing so far.

The USD-265-million second close came after investment commitments from a UK LGPS investment pool, a Dutch pension fund, and another re-up from an existing NextPower III ESG investor, the British firm said on Monday. With the move, the new investors have joined NextPower V ESG’s pool of existing investors, which includes KLP and a large Nordic pension fund.

NextPower V ESG was launched in January 2023 with a fundraising target of USD 1.5 billion and a hard cap of USD 2 billion, to invest in solar and battery storage technologies in Europe, North America and Chile. Its seed asset is a 100-MW solar park with a power purchase agreement (PPA) that is being built in the US state of Florida. It also has exclusivity over an 18-GW pipeline of projects in Spain, Poland, Italy, Canada, and the US.

When the investment ceiling is reached, the vehicle will have delivered 4 GW of capacity that is expected to generate green power for up to 1.1 million homes annually.

“The fund continues to draw significant interest from investors worldwide and I look forward to continuing our global fundraising activities and to announcing further investor commitments to NextPower V ESG and further fund investments shortly,” said Michael Bonte-Friedheim, CEO of NextEnergy Group.

(USD 1.0 = EUR 0.935)

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