NextEnergy Capital (NEC) announced that NextPower UK ESG (NPUK ESG) had finalized one of the largest solar-sleeved Power Purchase Agreements (PPAs) in the UK to date. This 20-year inflation-linked contract will cover 90% of the electricity generated by the Llanwern Solar Farm, currently the largest operational solar farm in the UK with an installed capacity of 75 MW.  Located in Newport, Wales, the nextenergy solar Llanwern site was among NPUK ESG’s initial seed assets.
The agreement also includes Renewable Energy Guarantees of Origin certificates (REGOs).
Located in Newport, Wales, the Llanwern Solar Farm was among NPUK ESG’s initial seed assets.
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The nextenergy solar Llanwern project spans 260 acres and remains the largest solar installation constructed and energized in the UK, capable of powering approximately 20,606 homes annually.
The sleeved PPA is a unique four-way physical contract, involving NPUK ESG selling power to Anglian Water Services (AWS) with the participation of EDF and SSE. In this arrangement, EDF receives the power generated by Llanwern, which is then balanced and converted to transform intermittent generation into stable baseload power.
This reliable energy is subsequently delivered to AWS through their energy supplier, SSE, aligning with AWS’s decarbonization goals.
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Michael Bonte-Friedheim, NextEnergy Group CEO and Founder, said, “NextPower UK ESG is one of the UK’s leading private solar funds that is playing a crucial part in the UK’s transition to Net Zero, as well as increasing the UK’s energy security through independence.”
He added, “This 20-year sleeved PPA fits perfectly into NextPower UK ESG’s contracted revenue strategy and demonstrates the future growth opportunity that solar serves in providing long-term power generation to both utilities and corporates as they increasingly look towards renewable energy sources as part of their decarbonisation journey.”
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NPUK ESG operates as a private UK solar fund. It concentrates on acquiring utility-scale solar and battery energy storage (BESS) assets at the ready-to-build stage. The fund constructs and energizes these assets to establish a substantial operating portfolio. Nextenergy solar Llanwern farm is a key example of this strategy.
Once operational, NPUK monetizes the generated power through a contracted strategy, ensuring a high degree of predictability and visibility in cash yields. During the investment period, the team actively engages in risk mitigation and value creation, optimizing the assets throughout their lifecycle before planning an exit.
Since its launch in August 2022, NPUK has successfully made two distribution payments to investors, exceeding targets and reporting impressive growth in Net Asset Value.