LEI: 213800ZPHCBDDSQH5447
19 March 2024
NextEnergy Solar Fund
Limited
("NESF"
or the "Company")
1GW Milestone and 50MW Energy
Storage Asset Online
NextEnergy Solar Fund, a leading
specialist investor in solar energy and energy storage, is pleased
to announce that the Company's maiden standalone 50MW energy storage asset, named
Camilla, has successfully begun commercial operations. This
is a significant milestone for the Company as it increases NESF's
total installed net capacity above 1GW to 1,014MW.
Camilla connected to the National
Grid in December 2023 and progressed successfully through its final
phases of commissioning early this year. Camilla is a 50MW 1
hour lithium-ion battery located in Fife, Scotland, which has been
pre-configured for augmentation to 2 hours. Camilla is the
first asset to be delivered through the Company's £300m Joint
Venture Partnership programme with Eelpower Limited.
The Company is encouraged by the
recent progress made by the National Grid as it continues to make
improvements in the dispatching capability of batteries in the
Balancing Mechanism and the introduction of additional reserve
products. This is positive for new operating assets entering
the market at this point, such as Camilla, as it represents
additional revenue opportunities.
On 20 February 2024 National Grid
ESO published the provisional results of its T-1 Capacity Market
Auction for delivery in 2024/25. Camilla successfully bid and
secured a contract with a clearing price of £35.79/kW. The
contract was secured with a derated capacity of 5.659MW and is
expected to generate £202k (£4k/MW on a total capacity basis) of
additional contracted revenue for the period 1 October 2024 through
to the end of September 2025.
The Company's disciplined approach
to capital allocation focuses on accretive investment activity,
consistent with the Company's investment objective of providing
ordinary shareholders with attractive risk-adjusted returns,
principally in the form of regular dividends.
Helen Mahy, Chair of NextEnergy
Solar Fund Limited, commented:
"I
am pleased that NESF has achieved commercial operations of its
first standalone energy storage asset, Camilla a 50MW battery in
Fife Scotland. Camilla is conveniently located adjacent to
the Glenniston substation and is already connected to the National
Grid, supporting constraints on Grid interconnector capacity to
areas of high demand. Energy storage assets will play a crucial
role in the UK's transition to net zero and we are proud to play a
central role in achieving this."
Michael Bonte-Friedheim, Founding
Partner and CEO, NextEnergy Group, commented:
"I'm delighted to confirm that Camilla's energisation
increases NESF's total installed net capacity to over 1GW,
alongside the recent energisation of NESF's first two international
solar co-investments. Expanding into energy storage
complements NESF's existing large portfolio of solar assets on a
standalone and co-located basis and provides multiple
diversification benefits for shareholders."
Mark Simon, CEO of Eelpower,
commented:
"Eelpower is very pleased that the 50MW project at Camilla
Farm has entered commercial operations and are proud to have
delivered it with our partners NESF. We look forward to
Camilla joining the market-leading assets we have commissioned over
the last seven years, delivering on the promise that flexible
battery assets represent for Scotland and supporting the transition
to net zero in Great Britain."
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For further information:
NextEnergy Capital
Michael Bonte-Friedheim
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020 3746 0700
ir@nextenergysolarfund.com
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Ross Grier
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Stephen Rosser
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Peter Hamid (Investor
Relations)
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RBC Capital Markets
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020 7653 4000
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Matthew Coakes
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Elizabeth Evans
Kathryn Deegan
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Cavendish
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020 7397 1909
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James King
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William Talkington
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H/Advisors Maitland
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020 7379 5151
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Neil Bennett
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Finlay Donaldson
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Ocorian Administration (Guernsey)
Limited
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01481 742642
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Kevin Smith
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Eelpower Limited
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07966 782611
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Paul Taylor, Taylor Keogh
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Notes to
Editors1:
About NextEnergy Solar
Fund
NextEnergy Solar Fund is a
specialist solar energy and energy storage investment company that
is listed on the premium segment of the London Stock Exchange and
is a FTSE 250 constituent.
NextEnergy Solar Fund's investment
objective is to provide ordinary shareholders with attractive
risk-adjusted returns, principally in the form of regular
dividends, by investing in a diversified portfolio of utility-scale
solar energy and energy storage infrastructure assets. The
majority of NESF's long-term cash flows are inflation-linked via UK
government subsidies.
As at 31 December 2023, the Company
had an unaudited gross asset value of £1,173m. For further
information please visit www.nextenergysolarfund.com
Article 9 Fund
NextEnergy Solar Fund is classified
under Article 9 of the EU Sustainable Finance Disclosure Regulation
and EU Taxonomy Regulation. NextEnergy Solar Fund's
sustainability-related disclosures in the financial services sector
are in accordance with Regulation (EU) 2019/2088 and can be
accessed on the ESG section of both the NextEnergy Solar Fund and
NextEnergy Capital website.
About NextEnergy Group
NextEnergy Solar Fund is managed by
NextEnergy Capital, part of the NextEnergy Group. NextEnergy
Group was founded in 2007 to become a leading market participant in
the international solar sector. Since its inception, it has
been active in the development, construction, and ownership of
solar assets across multiple jurisdictions. NextEnergy Group
operates via its three business units: NextEnergy Capital
(Investment Management), WiseEnergy (Operating Asset Management),
and Starlight (Asset Development).
· NextEnergy
Capital: Over 16 years of specialist
solar expertise having invested in over 400 individual solar plants
across the world. NextEnergy Capital currently manages four
institutional funds with a total capacity in excess of 3GW+ and has
assets under management of $4bn. www.nextenergycapital.com
· WiseEnergy®:
is a leading specialist operating asset manager in
the solar sector. Since its founding, WiseEnergy has provided
solar asset management, monitoring and technical due diligence
services to over 1,450 utility-scale solar
power plants with an installed capacity in excess of
1.8GW. www.wise-energy.com
·
Starlight: Developed over 100 utility-scale
projects internationally and continues to progress a large pipeline
of c.10GW of both green and brownfield project developments across
global geographies.
About Eelpower
Eelpower is a privately held,
well-established constructor-owner-operator in the rapidly growing
electricity storage market. Eelpower's management team
pioneered behind-the-meter battery storage integrated with hydro
and solar generation before establishing itself as one of the
leading UK battery storage players. Since 2017, Eelpower has
delivered seven large battery projects and consistently generated
among the highest revenues per MW of all storage operators in
UK.
Notes:
1: All financial data is
unaudited at 31 December 2023, being the latest date in respect of
which NextEnergy Solar Fund has published financial
information