NextEnergy Capital Group is pleased to announce a first-of-a-kind innovative debt financing to construct two subsidy-free solar farms. NEC has partnered with Santander, a leading provider of debt financing to the renewable energy sector, which will provide a non-recourse debt financing structure of £100 million to cover the investment into the two projects.
The two solar projects are Llanwern, a 75MW plant based in South Wales, and Strensham, a 40 MW plant in Worcestershire. These landmark projects will be built on a subsidy-free basis, with Llanwern being not only the largest subsidy free plant but also the largest solar farm in the UK to date. Their constructed value will be in excess of £60m, with connection to the grid expected for both in the final quarter of 2020. Both projects will be contracted with Power Purchase Agreements.
NEC has a long-term hold strategy for these projects and it is the intention that these two solar farms will be moved to a new subsidy-free private fund, NextPower UK ESG, which will target a significant number of new-build subsidy-free solar projects focused exclusively on the UK.
CEO and Founding Partner Michael Bonte-Friedheim said: “It’s a pleasure to announce this innovative new financing structure and the commencement of construction on further critical energy generating assets to be delivered on a subsidy-free basis. NEC group’s mission is to generate a more sustainable future by leading the transition to clean energy and these assets underline our wherewithal to pursue and deliver on it. The ability for NEC to work with its partner Santander to implement this transaction considering the extremely challenging backdrop of COVID-19 lockdown shows the strength and depth of the teams involved, coupled with the resilience of solar as an asset class in these times.”
