Statkraft has signed a power purchase agreement (PPA) for output from a 210MW solar plant in Portugal.
The Norwegian energy supplier will purchase electricity from the Santarém plant for a period of eight years.
The project, in which NextEnergy Solar Fund holds a 13% stake, comprises three solar plants under construction.
The PPA builds on the existing successful relationship between NextEnergy Capital and Statkraft, following an earlier signed PPA between the two covering Agenor, a 50MW Spanish solar asset and NESF’s first co-investment, where the company took a 25% stake alongside NextPower III ESG.
Santarém and Agenor were the first direct international co-investments made by NESF, sourced alongside its $50m commitment in NextPower III ESG.
NextPower III ESG is a $896m private solar fund focused on utility scale solar assets in OECD markets, which provides NESF the opportunity to “efficiently and quickly access” an established portfolio of operational and in-construction international solar assets.
To date, NextPower III ESG has acquired 1.8GW of solar, made up of 149 individual high-quality assets across the USA, India, Chile, Portugal, Spain, Greece, and Poland.
Co-investments alongside NextPower III ESG remain attractive to NESF as they are undertaken on a no-fee, no-carry basis.
Ross Grier, UK Managing Director of NextEnergy Capital, said: “The PPA in place for Santarém, of which NESF holds a 13% stake, is with a high credit counterparty, provides secured long-term visibility of cash flows, and ultimately provides stable returns for NESF.
“International solar co-investments alongside private capital continues to offer attractive growth opportunities for NESF alongside some of the largest institutional investors in the world.”