NextEnergy Capital's subsidiary, NextPower UK ESG (NPUK ESG), has signed one of the largest solar sleeved Power Purchase Agreements (PPAs) in the UK, securing energy from the 75 MW Llanwern Solar Farm in Wales. The agreement is a 20-year inflation-linked contract that encompasses 90% of the electricity generated by the solar farm, along with associated Renewable Energy Guarantees of Origin certificates (REGOs).
Llanwern Solar Farm is noted as the largest solar farm constructed and energized in the UK, spanning 260 acres. The sleeved PPA involves a four-way physical contract where NPUK ESG sells the generated power to Anglian Water Services (AWS), with participation from both EDF and SSE. Under this arrangement, EDF manages the power generated by Llanwern, balancing and firming it to convert intermittent generation into baseload blocks of power, which are then supplied to AWS through their energy supplier, SSE.
This contractual structure allows the renewable solar generation to reliably align with the energy requirements of AWS, supporting their decarbonization targets.
NPUK ESG is a private UK solar fund focused on acquiring utility-scale solar and battery storage (BESS) assets at the ready-to-build stage, overseeing their construction and energization to create a substantial operational portfolio. Once operational, the fund monetizes the generated power through a contracted strategy, providing predictable cash yields. The investment team adopts a proactive approach to risk mitigation and value creation during the asset holding period.
Since its launch in August 2022, NPUK has already distributed payments to its investors exceeding targets while also reporting notable growth in Net Asset Value.
Michael Bonte-Friedheim, chief executive and founder of NextEnergy Group, remarked, “NextPower UK ESG is one of the UK's leading private solar funds that is playing a crucial part in the UK's transition to Net Zero, as well as increasing the UK's energy security through independence. This 20-year sleeved PPA fits perfectly into NextPower UK ESG's contracted revenue strategy and demonstrates the future growth opportunity that solar serves in providing long-term power generation to both utilities and corporates as they increasingly look towards renewable energy sources as part of their decarbonization journey.”
David Riley, head of carbon neutrality at Anglian Water, stated, “Anglian Water is committed to being a carbon-neutral business to the benefit of customers and the environment across our region. This leading and innovative structure has enabled renewable energy to be consumed with a direct line of sight to the physical solar asset, made possible with the dedication and shared expertise from teams within NEC, EDF, SSE, and Anglian Water.”
