NextEnergy Solar Fund Ltd has reached a "major milestone" with the energisation of its first two international solar co-investments in collaboration with NextPower III ESG (NPIII ESG).
The investments comprise a 210MW facility in Santarém, Portugal, and a 50MW asset in Cadiz, Spain, named Agenor. Together, these installations are projected to generate 445GWh of renewable electricity annually, sufficient to supply around 126,700 homes with green energy.
NESF's stake in these ventures includes direct ownership of 13.6% in the Santarém project, 24.5% in Agenor, and a 6.21% share of NPIII ESG.
In total, the assets contribute an additional 46MW to NESF's total installed capacity, which now stands at 979MW.
A key feature of both projects is their secured long-term revenue streams through power purchase agreements (PPAs) with Statkraft, with the PPA for the Santarém project the largest of its kind in Portugal's history.
"With Agenor and Santarém now operational, we've completed our first direct international co-investments made by NESF through NextPower III ESG," said Ross Grier, chief operating officer and head of UK investment, NextEnergy Capital.
"The co-investment structure provides attractive exposure to international solar assets alongside other institutional investors and allows us to realise an uplift in installed capacity on a no-fee, no-carry basis.
"This enables us to target utility-scale solar assets across developed global markets and contributes to our long-term growth objectives."
NPIII ESG, which received a $50 million investment from NESF in June 2021, is a private fund dedicated to the international solar infrastructure sector. It focuses primarily on solar projects in OECD countries, including the US, Portugal, Spain, Poland, Greece, and Italy.
Currently, NPIII ESG manages 173 solar and storage assets, totalling 1.8GW in capacity.