NextPower UK ESG (NPUK), a leading private fund specializing in the acquisition and development of solar and battery energy storage system (BESS) projects in the UK, recently reached an important milestone. With the acquisition of Locks Solar Farm, a ready-to-build project located in Hampshire, the fund’s total capacity now stands at 515.5 MW.
Locks Solar Farm, with a capacity of 18.5 MW, secured a contract under the UK’s Contracts for Difference (CfD) mechanism during the sixth allocation round (AR6). This mechanism, introduced by the UK government in 2014, aims to support low-carbon electricity generation by reducing financial risks for developers and ensuring regular, inflation-linked income. These stable revenues attract investors and drive the expansion of renewable energy across the country.
A rapidly growing portfolio
Since its launch in August 2022, NPUK has built a portfolio of eleven solar and storage assets, diversified across the UK. These projects, at various stages of development, are optimized to maximize their performance throughout their lifecycle. Once fully deployed, NPUK’s portfolio is expected to reach a 2 GW capacity, enough to power approximately 500,000 UK households annually.
Through this strategy, the fund has already exceeded its targets for returns and dividend distributions. To date, NPUK has delivered three payments to its investors, supported by strong growth in net asset value (NAV).
Commitment to energy transition
NPUK does not merely acquire assets; it also builds projects through to their commissioning. The fund’s active approach to risk management and asset optimization demonstrates its ability to create value for investors. Moreover, integrating the CfD mechanism for Locks Solar Farm enhances long-term revenue security, aligning with NPUK’s strategy.
Currently, the fund continues to raise capital, having already secured £683 million, 37% above its initial target of £500 million. Several investors are in the final stages of due diligence, which should increase the resources available to support additional projects.
Ambitions aligned with energy policy
The development of Locks Solar Farm comes at a pivotal moment, as the new UK government seeks to accelerate renewable energy adoption. Michael Bonte-Friedheim, CEO of NextEnergy Group, emphasized that NPUK plays a central role in achieving the UK’s Net Zero goal while strengthening national energy security. Meanwhile, Ross Grier, Head of UK Investments, highlighted the rapid growth of NPUK, showcasing the resilience and efficiency of its investment model.
