NextEnergy’s Subsequent Energy III ESG fund invests in photo voltaic property
Clear vitality investor searching for funding to develop its photo voltaic, wind and batteries portfolio, as Inexperienced Funding Group unveils new photo voltaic enterprise Cero Era
NextEnergy Renewables is aiming to boost as much as £300m to assist develop its clear vitality funding portfolio by means of an preliminary public providing (IPO) on the London Inventory Change, it introduced at present.
The clear vitality investor is searching for money to spend money on a spread of personal funding funds focused in the direction of inexperienced applied sciences comparable to solar energy, wind farms and battery storage, and plans to get share placement on the inventory market underway later this month, with a view to wrapping up the fund increase in early March.
The fund might be managed by NextEnergy Capital IM Ltd, a $2.3m clear vitality funding supervisor that can also be a part of the broader NextEnergy Group, the corporate mentioned.
Subsequent Power Renewables mentioned it anticipated complete returns from the fund to be within the vary of 9 and 11 per cent from investments in a mixture of non-public funds alongside co-investments and direct acquisitions of infrastructure tasks. The portfolio might be break up equally between the ‘Subsequent Energy III ESG’ fund managed by NextEnergy Group, funds managed by different teams that concentrate on different clear vitality applied sciences, and direct investments in property alongside different non-public funds, it defined.
The corporate mentioned its overarching ambition was to drive a rise the worldwide renewable vitality provide, by backing each established inexperienced applied sciences whereas additionally supporting “new key transformative vitality transition infrastructure” comparable to hydrogen and battery storage.
Anne Wade, chair of NextEnergy Renewables, mentioned the fund provided a “really distinctive funding alternative” to these thinking about investing within the clear vitality transition.
“The NextEnergy Renewables fund will present the chance to right away make investments by means of our seed funding into the ‘NextPower III ESG’ fund, which has a major portfolio of worldwide photo voltaic property, and in time look to additional diversify the portfolio by means of funding into each non-public platforms and direct funding by means of co-invested alternatives,” she mentioned. “It’s this funding alternative set that may enable NextEnergy Renewables Restricted to supply range in each asset class and jurisdiction which really differentiates this from different choices.”
Information of the IPO got here amidst a flurry of latest bulletins within the European photo voltaic house, together with the launch of AMPYR Solar Europe, a brand new three way partnership from a clutch of European clear vitality gamers that brings collectively a 4GW photo voltaic pipeline throughout the UK, Germany and Netherlands.
As well as, the Inexperienced Funding Group (GIG) – the successor to the UK’s Inexperienced Funding Financial institution snapped up by Austrlia’s Macquarie in 2017 – at present introduced it has consolidated all of its photo voltaic growth exercise right into a single, devoted European photo voltaic enterprise it has named Cero Era.
The enterprise boasts 8GW of photo voltaic underneath growth within the UK, Italy, Spain, Poland, France and the Netherlands, a pipeline that represents one of many largest photo voltaic growth portfolios within the area, in accordance with the agency.
GIG mentioned the launch of the brand new portfolio firm would complement comparable efforts the investor had taken in North America and the Asia-Pacific to group photo voltaic growth exercise collectively into devoted companies.
“The launch of Cero Era marks an necessary milestone in GIG’s ambition to create Europe’s main photo voltaic growth firm,” mentioned GIG’s UK and Europe lead Edward Northam. “An agile, versatile, development-focused enterprise, backed by the worldwide experience, sources and attain of GIG, Cero is the right automobile to propel us ahead to the subsequent stage of that journey.”
Elsewhere, in the meantime, low carbon warmth and energy skilled AMP Clear Power has at present introduced a partnership with photo voltaic PV and vitality storage specialist Segen, in a bid to spice up entry to low-cost solar energy for UK companies.
“We’re delighted to be working with Segen to assist unlock the obstacles many installers face in making certain they maximise their photo voltaic PV tasks,” mentioned Francisco Cabadas, head of photo voltaic at AMP Clear Power. “By doing so, we might help extra companies and organisations benefit from the monetary and sustainability advantages of photo voltaic vitality.”