NextEnergy Capital has announced that NextPower UK ESG (“NPUK”), the largest private fund dedicated to new-build UK solar, has raised £733 million at its final fundraising close, nearly 50% above its £500 million target.
NPUK plays a crucial role in the UK’s Clean Power 2030 strategy to enhance energy security and reduce carbon emissions by boosting domestic green power generation. The Fund offers attractive returns by generating stable cash flows from a carefully chosen portfolio of new-build utility-scale solar PV assets in the UK with long-term contracted revenues. The Fund made its first distribution to investors in September 2023, just 13 months after launch.
The National Wealth Fund was the cornerstone investor in NPUK, committing £250 million on a match-funding basis to encourage private capital in UK renewables. NPUK also welcomed several new investors during the fundraising, including local government pension pools and international investors seeking to access the growing UK solar market through a specialist manager.
To date, NPUK has deployed over 70% of its committed capital and has acquired its fifteenth asset, bringing its portfolio capacity to 731MW. The Fund now operates 249MW of solar assets in the UK, including Llanwern, the country’s largest operating solar asset.
NPUK also has 482MW of solar and energy storage projects under construction or ready-to-build, with more acquisitions in its pipeline. The Fund is progressing rapidly towards adding over 400MW of operating capacity this year and is set to exceed 1GW of capacity upon full deployment, advancing the Clean Power 2030 goal of tripling UK solar capacity in the next five years.
Classified as an Article 9 Fund under the EU SFDR, NPUK delivers measurable impact, including biodiversity enhancements, with the highest transparency in reporting. Once fully operational, NPUK will supply clean energy to approximately 371,756 households annually and avoid up to 887,003 barrels of oil equivalent each year.
Michael Bonte-Friedheim, Group CEO of NextEnergy Group, celebrated NextPower UK’s success, raising £733 million—nearly 50% above its £500 million target. He attributed this to strong investor demand for expert-led strategies and thanked both existing and new investors for their support.
Bonte-Friedheim noted that the UK remains a prime market for utility-scale solar, with significant growth opportunities. He also announced the upcoming launch of NextEnergy UK II to continue supporting the UK’s clean energy ambitions.
Stuart Nivison, Head of Portfolio Management at the National Wealth Fund, expressed excitement over the success of their cornerstone investment in NextPower UK, marking a significant milestone. He emphasized that the fund’s catalytic capital will help mobilize institutional investment in UK clean energy projects, driving growth and increasing capacity to power homes and businesses.
Nadeem Hussain, Head of Private Markets and Co-CIO at LGPS Central, stated that the company is dedicated to investing in infrastructure opportunities that meet both financial and sustainability goals for their Partner Funds. He highlighted NextPower UK as a source of stable, long-term returns from solar farms while contributing to significant environmental impact.
Imraan Mohammed, Portfolio Manager at Border to Coast, highlighted the UK as an attractive market for development-stage renewables, citing strong market fundamentals and increasing policy support. He praised the NextPower UK fund for its early infrastructure allocations and the NextEnergy team’s success in deploying capital, noting the fund’s positive impact in attracting further investment for critical UK infrastructure.
