NextPower UK ESG, a private UK solar fund, has secured a 20-year sleeved Power Purchase Agreement (PPA) for Llanwern Solar Farm in Newport, Wales, which is one of the UK’s largest operational solar facilities.
The PPA, which is linked to inflation, encompasses 90% of the electricity produced by the farm along with any associated Renewable Energy Guarantees of Origin certificates (REGOs).
Llanwern Solar Farm, spanning 260 acres and boasting a capacity of 75MW, can produce enough electricity to power an estimated 20,606 homes annually. Its size means that it is one of the largest of its kind built and energised in the UK to date.
This sleeved PPA involves a complex four-way arrangement where NextPower UK ESG sells power to Anglian Water Services (AWS), with EDF in the UK and SSE also playing crucial roles. EDF manages the initial power conversion to ensure consistency and reliability, which SSE then delivers to AWS, aligning with their energy needs and supporting their decarbonisation goals.
NextPower UK ESG specialises in acquiring and developing utility-scale solar and battery storage assets, focusing on building a substantial operational portfolio. This strategy aims to provide stable and predictable returns through contracted power sales, coupled with proactive asset management and optimization throughout the fund’s duration.
Michael Bonte-Friedheim, CEO and Founder of NextEnergy Group, stated, “NextPower UK ESG is playing a crucial part in the UK’s transition to net zero and enhancing the UK’s energy security through independence. This 20-year sleeved PPA is aligned perfectly with our strategy for contracted revenue and underscores the significant role that solar power will play in the UK’s future energy landscape.”
David Riley, Head of Carbon Neutrality at Anglian Water, added, “This structure has allowed us to consume renewable energy with a direct connection to its source, thanks to the collaborative efforts from all parties involved.”
Paul Barwell, Head of Energy Sales at NextEnergy Capital, concluded, “This agreement ensures long-term, inflation-linked revenues for our investors and highlights the increasing role of renewable energy in corporate energy strategies. It reflects our commitment to assisting companies in meeting their decarbonisation objectives within a Net-Zero framework.”