NextEnergy Capital, a fund manager specializing in solar energy, has signed one of the UK’s largest Power Purchase Agreements (PPA) with Anglian Water. The 20-year contract covers 90% of the electricity production and associated certificates from the Llanwern Solar Farm. Located in Newport, Wales, this farm is the largest operational solar site in the country with an installed capacity of 75 MW.
Llanwern Solar Farm has the capacity to power 20,606 homes per year and covers 260 acres. The signed PPA is of the “sleeved” type, a complex physical contract involving several parties. The model includes NextPower UK ESG, a subsidiary of NextEnergy, as the producer, EDF for balancing electricity management, and SSE as the energy supplier to Anglian Water.
An innovative contract for sustainable energy transition
The contract works as follows: NextPower sells the farm’s production to EDF, which stabilizes and converts it into baseload energy blocks. These blocks are then sold to SSE, which directly supplies Anglian Water, ensuring a consumption profile aligned with the company’s needs.
The goal of this structure is to convert intermittent energy into a predictable resource, contributing to Anglian Water’s decarbonization objectives while ensuring a secure, inflation-linked revenue stream for NextPower.
A contractual model focused on predictability and security
NextPower UK ESG focuses on the acquisition of solar and energy storage assets (BESS), with a strategy of building these projects to energization. Once operational, revenues are generated through secured contracts. Since its launch in 2022, the fund has made two profit distributions exceeding expectations and recorded significant net asset value growth.
This model enables investors to benefit from predictable long-term cash flows while supporting the country’s energy transition.
Alignment with corporate decarbonization strategy
According to Michael Bonte-Friedheim, CEO and founder of NextEnergy Group, “NextPower UK ESG plays a crucial role in the UK’s transition to carbon neutrality while contributing to the country’s energy security through independent sources.”
David Riley, Head of Carbon Neutrality at Anglian Water, emphasized that this agreement allows for renewable energy consumption with direct physical traceability to the source, making the process transparent and more efficient.
