Norwegian pension fund KLP, alongside two other European asset owners, has committed towards an investment fund focused on solar and energy storage assets located in OECD countries.
At first close, NextEnergy Capital’s NextPower V ESG investment vehicle raised an initial $480m, comprising $330m in direct commitments and $150m in co-investment allocations.
Investors who have committed to the fund include KLP, which has $70bn of assets under management, a German occupational pension fund, and a large Nordic pension fund.
Next Energy Capital, which is a renewable energy-focused investment manager, stated that it expects to welcome additional investors in its second close of the fund later this year, with the fund having a capital commitments target of $1.5bn and a $2bn hard cap.
The Article 9 fund will invest over a 10-year period and will focus on solar and battery projects in Europe, North America and Chile. It has identified a pipeline of assets in these geographies which could produce more than 14 gigawatts of power.
Michael Bonte-Friedheim, CEO and founding partner of NextEnergy Group, said: “Utility-scale solar represents a very large investment opportunity set globally, with total spending in 2023 forecast to reach $382bn, and we aim to continue our leadership role in the sector.
“We leverage our focus, experience and expertise in the solar infrastructure sector to secure and invest in attractive solar projects and portfolios and generate superior investor outcomes.”
