Renewables company NextEnergy Capital says its NextPower UK ESG (NPUK ESG) solar and energy storage-focused fund has exceeded its fund-raising target of £500 million ($641 million) by 30% to a combined £653 million ($837 million) to date.
The additional capital has been contributed by LGPS CIV Limited, with other funders being LGPS Central Limited, Border to Coast Pensions Partnership, Merseyside Pension Fund, Brunel Pension Partnership, and Strathclyde Pension Fund. Some of the investors come from the Middle East and Japan.
"The Fund's strategy has aligned really well with that of the LGPS community and it's great to see so many LGPS investors backing renewable energy assets here in the UK," said Managing Director and Head of Investor Relations at NextEnergy Capital, Shane Swords.
A closed-ended private fund managed by NextEnergy Capital, the NPUK ESG fund focuses on acquiring utility-scale solar and battery storage assets. These are at the ready-to-build stage. The fund then constructs and commissions them to monetize the power generated.
According to NextEnergy Capital, NPUK's total operational and construction asset portfolio is now over 75% of the fund's total capacity. Once fully operational at close to 2 GW capacity, it will make a significant ESG impact in the UK with enough clean energy for around 500,000 UK households/year.
In March 2024, NextEnergy Capital announced having raised $580 million for its NextPower V ESG, another solar and BESS strategy fund focused on the OECD markets. It targets a total of $1.5 billion for this fund with a $2 billion hard cap (see UK's NextEnergy Capital Expands Fund By $100 Million).