NextEnergy Solar Regulatory News (NESF)

LEI: 213800ZPHCBDDSQH5447

28 October 2020

NextEnergy Solar Fund Limited

("NESF" or the "Company")

Operating Update

NextEnergy Solar Fund, the solar power renewable energy investment company, is pleased to provide the following operational update.

First Half-Year Generation Update

NESF is pleased to announce that generation for the first half of this financial year has significantly exceeded budget. For the period ending 30 September 2020, generation from NESF's portfolio was 11.1% above budget (2019: 5.0%), while irradiation has exceeded expectations by 10.8% (2019: 4.8%). The Company has reaffirmed its full-year dividend target of 7.05p for financial year ending 31 March 2021 (2019: 6.87p).

Energisation of High Garrett, NESF's Third Subsidy-free Solar Asset

NESF is pleased to announce the energisation of its 8.5MWp subsidy-free solar asset, High Garrett. This new site brings NESF's total subsidy-free portfolio to 64MWp following Bosworth (an extension to the Hall Farm asset) and Staughton, which were energised in 2019. The Company's total subsidy-free generation capacity is enough to power approximately 20,000 homes each year.

High Garrett was developed in-house and built in Essex, adjacent to NESF's existing 5MWp ROC backed Kentishes solar PV asset, acquired in 2016. It benefits from the extended planning, lease extension, existing grid infrastructure and extra export capacity of the Kentishes asset.

Having started construction earlier this year, the 8.5MWp asset was successfully energised on 22 October 2020. The energisation of High Garrett, NESF's third subsidy-free asset, brings the total capacity of the Company's operating assets to 763MWp across 91 individual solar assets, including three residential rooftop portfolios.

NESF has built innovative structuring, delivery and operating asset management capabilities to develop and construct subsidy-free plants in the UK that are value-accretive for the Company and its investors. The Company intends to add a total of approximately 150MWp (of which 64MWp is now operational) in UK subsidy-free capacity to its portfolio as it leads the transition of the solar industry from a subsidy-based regime to providing clean electricity on market competitive terms. 

For further information:

Notes to Editors[i]:

A constituent of the FTSE 250 Index, NextEnergy Solar Fund ("NESF") is a renewable energy infrastructure investment company that invests primarily in operating solar power plants in the UK (it may invest up to 30% of its gross assets in other OECD countries). The Company is committed to ESG principles and responsible investment and makes a meaningful contribution to reducing CO2 emissions through the generation of clean solar power. NESF has been designated a Guernsey Green Fund by the Guernsey Financial Services Commission and has been awarded the London Stock Exchange's Green Economy Mark.

NESF has a diversified portfolio comprising 91 operating solar assets, primarily on agricultural, industrial and commercial sites, with a combined installed power capacity of c.763MW.

As at 30 June 2020, the Company has gross assets of £987 million, of which 88% is invested in the UK, and net assets of £576 million. The majority of long-term cash flows from its investments are inflation-linked.

NESF's investment objective is to provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets. The dividend is payable quarterly, and the Company has announced a dividend target for the year ending 31 March 2021 of 7.05p per ordinary share. 

NESF is differentiated by its access to NextEnergy Capital Group ("NEC Group"), its Investment Manager, which has a strong track record in sourcing, acquiring and managing operating solar assets. WiseEnergy is NEC Group's specialist operating asset management division, which since its founding has provided operating asset management, monitoring, technical due diligence and other services to over 1,500 utility-scale solar power plants with an installed capacity in excess of 1.7 GW.

Further information on NESF, NEC Group and WiseEnergy is available at nextenergysolarfund.com, nextenergycapital.com and wise-energy.eu.

[1] Note: All financial data is as at 30 June 2020, being the latest date in respect of which NESF has published financial information.