REG - NextEnergy Solar Fnd - 1GW Milestone and 50MW Energy Storage Asset Online

NextEnergy Solar FundAnnouncement

19/03/2024 07:00

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RNS Number : 3180H  NextEnergy Solar Fund Limited  19 March 2024

LEI: 213800ZPHCBDDSQH5447

19 March 2024

NextEnergy Solar Fund Limited

("NESF" or the "Company")

 

 

1GW Milestone and 50MW Energy Storage Asset Online

 

 

NextEnergy Solar Fund, a leading specialist investor in solar energy and
energy storage, is pleased to announce that the Company's maiden standalone
50MW energy storage asset, named Camilla, has successfully begun commercial
operations.  This is a significant milestone for the Company as it increases
NESF's total installed net capacity above 1GW to 1,014MW.

 

Camilla connected to the National Grid in December 2023 and progressed
successfully through its final phases of commissioning early this year.
Camilla is a 50MW 1 hour lithium-ion battery located in Fife, Scotland, which
has been pre-configured for augmentation to 2 hours.  Camilla is the first
asset to be delivered through the Company's £300m Joint Venture Partnership
programme with Eelpower Limited.

 

The Company is encouraged by the recent progress made by the National Grid as
it continues to make improvements in the dispatching capability of batteries
in the Balancing Mechanism and the introduction of additional reserve
products.  This is positive for new operating assets entering the market at
this point, such as Camilla, as it represents additional revenue
opportunities.

 

On 20 February 2024 National Grid ESO published the provisional results of its
T-1 Capacity Market Auction for delivery in 2024/25.  Camilla successfully
bid and secured a contract with a clearing price of £35.79/kW.  The contract
was secured with a derated capacity of 5.659MW and is expected to generate
£202k (£4k/MW on a total capacity basis) of additional contracted revenue
for the period 1 October 2024 through to the end of September 2025.

 

The Company's disciplined approach to capital allocation focuses on accretive
investment activity, consistent with the Company's investment objective of
providing ordinary shareholders with attractive risk-adjusted returns,
principally in the form of regular dividends.

 

 

Helen Mahy, Chair of NextEnergy Solar Fund Limited, commented:

"I am pleased that NESF has achieved commercial operations of its first
standalone energy storage asset, Camilla a 50MW battery in Fife Scotland.
Camilla is conveniently located adjacent to the Glenniston substation and is
already connected to the National Grid, supporting constraints on Grid
interconnector capacity to areas of high demand. Energy storage assets will
play a crucial role in the UK's transition to net zero and we are proud to
play a central role in achieving this."

 

Michael Bonte-Friedheim, Founding Partner and CEO, NextEnergy Group,
commented:

"I'm delighted to confirm that Camilla's energisation increases NESF's total
installed net capacity to over 1GW, alongside the recent energisation of
NESF's first two international solar co-investments.  Expanding into energy
storage complements NESF's existing large portfolio of solar assets on a
standalone and co-located basis and provides multiple diversification benefits
for shareholders."

 

Mark Simon, CEO of Eelpower, commented:

"Eelpower is very pleased that the 50MW project at Camilla Farm has entered
commercial operations and are proud to have delivered it with our partners
NESF.  We look forward to Camilla joining the market-leading assets we have
commissioned over the last seven years, delivering on the promise that
flexible battery assets represent for Scotland and supporting the transition
to net zero in Great Britain."

 

 

 For further information:

 NextEnergy Capital                          020 3746 0700

 Michael Bonte-Friedheim                     ir@nextenergysolarfund.com
 Ross Grier
 Stephen Rosser
 Peter Hamid (Investor Relations)

                                             020 7653 4000

 RBC Capital Markets
 Matthew Coakes
 Elizabeth Evans

 Kathryn Deegan

 Cavendish                                   020 7397 1909
 James King
 William Talkington

                                             020 7379 5151

 H/Advisors Maitland
 Neil Bennett
 Finlay Donaldson

                                             01481 742642

 Ocorian Administration (Guernsey) Limited
 Kevin Smith
                                             07966 782611

 Eelpower Limited
 Paul Taylor, Taylor Keogh

 

 

Notes to Editors(1):

About NextEnergy Solar Fund

NextEnergy Solar Fund is a specialist solar energy and energy storage
investment company that is listed on the premium segment of the London Stock
Exchange and is a FTSE 250 constituent.

 

NextEnergy Solar Fund's investment objective is to provide ordinary
shareholders with attractive risk-adjusted returns, principally in the form of
regular dividends, by investing in a diversified portfolio of utility-scale
solar energy and energy storage infrastructure assets.  The majority of
NESF's long-term cash flows are inflation-linked via UK government subsidies.

 

As at 31 December 2023, the Company had an unaudited gross asset value of
£1,173m.  For further information please visit www.nextenergysolarfund.com
(http://nextenergysolarfund.com/)

Article 9 Fund

NextEnergy Solar Fund is classified under Article 9 of the EU Sustainable
Finance Disclosure Regulation and EU Taxonomy Regulation.  NextEnergy Solar
Fund's sustainability-related disclosures in the financial services sector are
in accordance with Regulation (EU) 2019/2088 and can be accessed on the ESG
section of both the NextEnergy Solar Fund and NextEnergy Capital website.

 

About NextEnergy Group

NextEnergy Solar Fund is managed by NextEnergy Capital, part of the NextEnergy
Group.  NextEnergy Group was founded in 2007 to become a leading market
participant in the international solar sector.  Since its inception, it has
been active in the development, construction, and ownership of solar assets
across multiple jurisdictions.  NextEnergy Group operates via its three
business units: NextEnergy Capital (Investment Management), WiseEnergy
(Operating Asset Management), and Starlight (Asset Development).

 

·    NextEnergy Capital: Over 16 years of specialist solar expertise
having invested in over 400 individual solar plants across the world.
NextEnergy Capital currently manages four institutional funds with a total
capacity in excess of 3GW+ and has assets under management of $4bn.
www.nextenergycapital.com (http://www.nextenergycapital.com/)

·    WiseEnergy®:  is a leading specialist operating asset manager in
the solar sector.  Since its founding, WiseEnergy has provided solar asset
management, monitoring and technical due diligence services to over 1,450
utility-scale solar power plants with an installed capacity in excess of
1.8GW.  www.wise-energy.com (http://www.wise-energy.com)

·    Starlight: Developed over 100 utility-scale projects internationally
and continues to progress a large pipeline of c.10GW of both green and
brownfield project developments across global geographies.

 

About Eelpower

Eelpower is a privately held, well-established constructor-owner-operator in
the rapidly growing electricity storage market.   Eelpower's management team
pioneered behind-the-meter battery storage integrated with hydro and solar
generation before establishing itself as one of the leading UK battery storage
players.  Since 2017, Eelpower has delivered seven large battery projects and
consistently generated among the highest revenues per MW of all storage
operators in UK.

 

 

 

Notes:

(1:) All financial data is unaudited at 31 December 2023, being the latest
date in respect of which NextEnergy Solar Fund has published financial
information

 

 

 

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