NextEnergy Solar Fund (NESF) has established a new £200m joint venture partnership (JVP2) with Eelpower increasing its ownership to 75%, with Eelpower holding the remaining 25%.
JVP2 is separate to the existing £100m JVP1 announced last year.
NESF’s first 50MW battery storage project through JVP1 is under construction in Fife, Scotland, and is expected to be energised and grid-connected in the first half of 2023.
Energy storage remains a key strategic priority for NESF and forms part of its long-term equity growth strategy.
JVP2 “significantly increases” NESF’s position in the UK battery storage sector and provides a “unique opportunity” through both JVP1 and JVP2, to pursue a pipeline of over 500MW (£300m) battery energy storage opportunities, which are already under exclusivity.
Use of full capacity of both JVP1 and JVP2 remains subject to shareholder and FCA approval due to the company’s existing investment policy being limited to 10% of gross asset value into energy storage.
NESF’s investment manager and advisor NextEnergy Capital will be consulting investors over the coming months to seek support to increase this limit to allow the Company to fully capture the energy storage growth opportunities available to the fund.
The company continues to benefit from partnering with Eelpower which has a track record and experience in the delivery, management, and optimisation of battery storage assets in the UK.
Eelpower will provide EPC and ongoing specialist asset management services to the storage assets.
Kevin Lyon, Chairman of NextEnergy Solar Fund, said: “Battery storage is a vital technology in increasing the penetration of renewables in the UK.
“NESF has made excellent progress expanding and diversifying into this technology through its relationship with Eelpower.
“NESF has created a unique opportunity to become a key player in this space, whilst enhancing the existing portfolio of solar assets.
“Pending shareholder and FCA approval, NESF can further diversify and offer investors continued exciting growth prospects.”