NextEnergy Capital has successfully raised $265 million (€274 million) in its second close for its fifth strategy, bringing the total raised so far to $745 million.

Continued Fundraising Success

The fund, known as NextPower V ESG (NPV ESG), focuses on solar and battery storage projects in OECD markets. It aims to raise $1.5 billion with a hard cap of $2 billion. Among the investors are a UK local government pension scheme investment pool, a Dutch pension fund, and existing NextPower III ESG investors. New investors join Norway’s KLP, which invested in the fund last year.

Investment Strategy and Targets

NPV ESG targets carefully selected OECD markets for solar and battery storage investments. Its objective is to build significant portfolios in each market, establish an operational track record, and divest the portfolio by 2033. The fund has already initiated its investment cycle with a 100MW utility-scale solar project in Highland County, Florida, US. Additionally, it has several other investment opportunities from its 18GW pipeline, including operational projects with CfD contracts.

Sustainable Impact and Financial Returns

Once fully invested, NPV ESG is expected to generate clean energy equivalent to powering up to 1.1 million households per year and avoid an estimated fossil fuel consumption of nearly 220 million cubic meters of natural gas annually. This emphasizes NextEnergy Capital’s commitment to sustainable investing while ensuring attractive financial returns for investors.

Michael Bonte-Friedheim, CEO of NextEnergy Group, expressed his satisfaction with the fundraising progress, highlighting NextEnergy Capital’s role as a leading specialist ‘solar-plus’ investment manager focused on OECD markets.

Shane Swords, Managing Director and Global Head of Investor Relations at NextEnergy Capital, emphasized the fund’s positive impact on communities and countries where its assets are located. He also highlighted the strong demand from investors seeking stable renewable energy returns and recognized NextEnergy Capital’s experience and opportunities in the solar-plus sector.

Source：realassets.ipe.com