NextPower III ESG (NPIII ESG), the international OECD private solar fund managed by NextEnergy Capital (NEC), is delighted to announce its first strategic solar and battery storage acquisitions in Greece. The acquisitions include six utility-scale solar PV projects totalling 132MWp, and a majority in six standalone battery storage projects totalling 400MW.
These acquisitions mark NPIII ESG’s first transactions in both Greece and battery storage, capitalizing on the investment manager’s acquisition track record and experience across both Europe and energy storage. NEC’s parent company, NextEnergy Group, has been active in Greece since 2021 and has undertaken its first investments in energy storage in 2018. The solar projects will target long-term Power Purchase Agreements for the entirety of their generation, whilst the storage projects are expected to participate in the 2023 CfD auction process.
NEC is also delighted to announce that NPIII ESG’s portfolio capacity currently amounts to over 1.7GW with assets across the USA, Chile, Spain, Portugal, Poland, India, and Greece, demonstrating NextEnergy Capital’s strong capabilities internationally in identifying and acquiring attractive investment opportunities within the fund’s targeted geographies.
NPIII ESG has acquired 23 solar portfolios and one energy storage portfolio since its inception in 2018. 2022 has been a very successful year with strong acquisition momentum and a record number of acquisitions being closed totalling c.1.2GW: 123MW in Chile; 210MW in Portugal; 200MW in the USA; 137MW in Spain; 14MW in Poland and, most recently, 532MW in Greece. NPIII ESG continues to pursue a large pipeline of solar assets currently under exclusivity to fully deploy NPIII ESG’s total raised capital by the second half of 2023, 5 months ahead of the end of the investment period.
NPIII ESG completed its fundraising period in January 2022, with a final close of $896 million, including an SMA, significantly surpassing its target of $750 million. The fund’s investor base comprises leading institutional investors in Europe, the Americas, and the UK.
NPIII ESG is a fund that provides a positive social and environmental impact in the countries and local communities it has and will invest in. When NPIII ESG is fully invested across an installed capacity of circa 2GW, it can expect to deliver an impact of estimated annual avoided emissions of circa 2 million tCO2e each year, which on a conservative basis is the equivalent to providing energy for more than circa 1.3 million homes per year.
Aldo Beolchini, Managing Partner and Chief Investment Officer, NextEnergy Group, commented, “I am delighted with the very strong investment momentum that NextPower III ESG currently has. Additionally, entering the Greek solar market is the next logical step in NextPower III ESG’s international expansion, Greece is the second largest market in terms of total electricity demand in South-Eastern Europe and offers high levels of solar irradiation, ideal for utility-scale solar deployment. I am also excited to see NextPower III ESG make its strategic step into battery storage, as we have done with our other funds, a highly complementary technology to solar with an attractive return profile. NextPower III ESG will benefit from NextEnergy Capital’s experience in this asset class, having owned battery assets since 2018.”
Filinto Martins, Managing Director and Head of NextPower III ESG, said, “Following this acquisition, NextPower III ESG has reached a capacity in excess of 1.7GW, a huge milestone achieved in such a short period. We are continuing to pursue attractive opportunities in the international market to deploy the remaining capital, with a particular focus on solar across Europe, where the opportunities present a logical, attractive investment.”