Rishabh Mosalpuria
London-based investment management company NextEnergy Capital is all set to acquire a portfolio of 12 solar PV (photovoltaic) projects worth 248 Megawatt (MW) in north-eastern Spain. The company announced that it will allocate its latest international OECD Fund, NextPower V ESG; they will enter into this binding agreement for this project.
With this acquisition, the fund has completed its fourth investment. This is followed by the recent acquisition of a 100 MW solar project in the USA and two operational Contracts for difference (CfD) portfolios worth 50 MW and 66 MW in Europe. Company is significantly building its portfolio for the last six months by constructing 348 MW, operating 116 MW, and investing over 500 MW in exclusivity or advanced negotiation. NPV ESG has secured a promising investment of $745 million (including $150 million for co-investments) with investors from all of Europe.
Given the current combination of both the lower costs of solar PV modules and higher power prices across the world, the investment team is excited about the opportunity that lies ahead. Additionally, NPV ESG also provides a solid and quantifiable impact, including biodiversity measures. NPV ESG is estimated to generate c.4.5 gigawatt (GW) of clean energy sufficient to power 1.1 million households and eliminate use of nearly 220 million m3 of natural gas every year.
Aldo Beolchini, CIO and Managing Partner at NextEnergy Capital, displayed a positive reaction to their latest investment, which is shortly followed by the recent acquisition in Poland, shows their strength. “NPV ESG continues to go from strength to strength, this latest investment in Spain shortly follows the recent acquisition in Poland which again demonstrates NEC’s ability to deploy capital quickly and efficiently, whilst also highlighting NEC as a market leader in the solar space with over 360 MW of capacity added to NPV ESG in the last twelve weeks” says Beolchini in official press release.
Antonio Salvati, Managing Director NextPower V ESG at NextEnergy Capital, seemed joyous and optimistic on the development and quoted, “We are delighted with the binding agreement to acquire this sizable Spanish portfolio. NEC currently operates c.500 MW of solar assets in this geography, which remains an attractive market for investments. We expect to continue investing in Iberia through our Madrid office, and NPV ESG currently has multiple additional projects under advanced negotiation in the region.”
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However, this news comes amidst a tumultuous time when energy prices in Spain’s domestic market were low this summer due to heavy investment in solar energy in the past. While the news might sound beneficial for consumers, manufacturers are in jeopardy of surviving amid difficult competition. Donoso Jose, CEO of the UNEF Spanish Solar Association, said that this is a time of paradox where they have to deal with cheap energy along with a complex system that does not reflect the real costs of energy. This complicates the situation for manufacturers, making NextEnergy Capital’s heavy investment in Spain a point of keen interest for the solar industry.
