NextEnergy Capital (NEC) has announced all four of its contract for difference (CfD) auction bids across both its NextPower UK ESG fund and in-house development company Starlight were successful in the AR6 auction.
The winning CfD bids by NEC cover the full generating capacity of 165.8MW across four solar assets with solar prices successfully secured at a fixed price of £50.07.
This represents a £3-£4 increase on the same 2012 pricing terms when compared to last year’s AR4 & AR5, NEC said.
Approximately 3.3GW of solar capacity was successful in AR6 which makes it the most successful auction to date and another important step forward for the UK’s net zero transition plans.
NextEnergy Group chief executive and founding partner Michael Bonte-Friedheim said: “Our success in the government’s latest CfD auction further cements NextEnergy Capital as one of the world’s largest specialist solar+ investment managers, with four projects with a generating capacity of 166MW securing successful bids.
“The CfD mechanism continues to provide stability to investors in new solar projects in the UK by providing long-term contracted revenues which match the contracted revenue strategies of all NEC funds.
“The success of the whole AR6 auction should provide further comfort to all investors in the UK renewable infrastructure space.”
NextEnergy Capital head of energy sales Paul Barwell added: “The fixed price of £50.07 represents roughly £69.50 in terms of 2024 pricing terms and further demonstrates strong government support towards developers of renewable assets whilst providing a further boost of confidence in the UK renewable energy landscape.
“This pricing cements new-build solar infrastructure as the cheapest source of decarbonised new-build power generation in the UK.”