NextEnergy Solar enters new joint venture partnership with Eelpower – NextEnergy Solar (NESF) has entered a new £200m Joint Venture Partnership (JVP2) with Eelpower, a privately held constructor-owner-operator in the new and rapidly growing electricity storage market.
JVP2 reflects the successful relationship built with Eelpower, offering enhanced terms by increasing NESF ownership to 75%, with Eelpower holding the remaining 25%. The partnership is separate to the existing £100m Joint Venture Partnership (JVP1) announced last year. NESF’s first 50MW battery storage project through JVP1 is currently under construction in Fife, Scotland, and is expected to be energised and grid-connected in the first half of 2023.
The latest partnership significantly increases NESF’s position in the UK battery storage sector and provides a unique opportunity through both JVP1 and JVP2, to actively pursue a high-quality pipeline of over 500MW (£300m) battery energy storage opportunities, which are already under exclusivity.
Utilisation of full capacity of both partnerships remains subject to shareholder and FCA approval due to NESF’s existing investment policy being limited to 10% of GAV into energy storage. NextEnergy Solar’s manager and advisor, NextEnergy Capital, will be consulting investors over the coming months to seek support to increase this limit to allow the trust to fully capture the energy storage growth opportunities available to the fund.
Kevin Lyon, chairman of NextEnergy Solar Fund, said: “Battery storage is a vital technology in increasing the penetration of renewables in the UK. NESF has made excellent progress expanding and diversifying into this technology through its relationship with Eelpower. NESF has created a unique opportunity to become a key player in this space, whilst enhancing the existing portfolio of solar assets. Pending shareholder and FCA approval, NESF can further diversify and offer investors continued exciting growth prospects.”
Michael Bonte-Friedheim, CEO of NextEnergy Group added: “The new joint venture partnership builds on the successful relationship with the Eelpower team and enhances NESF’s position as a key player in the battery storage sector. The partnership also secures NESF an exclusive pipeline of over 500MW of battery storage opportunities which is incredibly exciting, and will further enhance the UK’s energy independence once energised and grid-connected.”
NESF : NextEnergy Solar enters new joint venture partnership with Eelpower