NextEnergy Solar Fund is plotting a huge UK solar spending spree with as much as 600MW of capacity in its sights.
The fund – already one of the UK’s largest operational asset holders – revealed in a trading update earlier this week that it remains in various stages of negotiations with UK solar owners and developers.
It is closest to 23 sites with a total operational capacity of 98.5MW. NESF is in advanced negotiations with the holders of these assets, which have an investment value of around £111 million.
Meanwhile NESF remains in negotiations with a further tranche of solar projects with a combined capacity of 170MW for a total investment value of around £147 million, and initial discussions on a further 331MW of UK solar.
In total NESF has its sights on 599.5MW of assets. Although unlikely, if the fund managed to acquire all of that capacity its total portfolio size would climb well above the 1GW mark.
To chase those assets NESF is looking to build on its current £100 million in cash and credit with an additional placing, which it hopes will raise a further £100 million. The placing is expected to close next week with shares issued before the end of the month.
NESF’s ambitions for operational capacity match revelations from earlier this week that the fund is also targeting subsidy-free developments in the UK with an eye to build these out over the course of the next 12 to 24 months.