NextEnergy Solar Fund has reached its development target of 150MW of subsidy-free solar in the UK, through approving two projects totalling 85MW.
Both projects being prepared for construction and are expected to be energised in early 2022.
The assets have an approximate investment value of £45m and comprise Whitecross, a 35.3MW project in Lincolnshire and Hatherden, a 50MW project in Hampshire.
Next Energy Solar Fund has selected Whitecross and Hatherden from its development portfolio based on the assets’ “attractive forecast financial returns” and their relative near-term energisation.
The fund is now looking to divest any residual development risk and has agreed to divest 16 development projects (not in construction or in operation) from its subsidy-free pipeline.
The identified projects will be sold to a subsidiary of NextPower Development.
The divestment amounts to a combined consideration of £5.6m.
This follows NESF’s announcement in May 2020 regarding the sale of two subsidy-free projects under development (not in construction or in operation) with a capacity of 115MW to NextPower for a combined total consideration of £11.5m.
NextPower and its subsidiaries are under the common control of the wider NEC Group along with NextEnergy Capital Limited (Investment Adviser to NESF) and NextEnergy Capital IM Limited (Investment Manager to NESF) and as such are related parties of the company.