100MWp sale agreed with NextEnergy Solar Fund for £64.3m

Lightsource bp, a global leader in the development and management of solar energy projects, has today announced the completion of the sale of 100MWp of UK solar projects to FTSE 250 renewable energy investment company NextEnergy Solar Fund (NESF), for a total consideration of £64.3 million. 

The transaction consists of two 50MWp solar projects, one in Yorkshire and one in Nottinghamshire, one of which is already commissioned, and the second will reach connection in the first half of 2021. Both sites are being constructed using high-quality components and the latest bifacial module technology, to maximise generation and returns. Once operational, the combined installed capacity of the two sites will produce enough renewable electricity to power the equivalent of c.29,000 UK households per year and will increase NESF’s installed capacity by almost 15%. 

The renewable energy produced by this portfolio is contracted to AB InBev, the world’s largest brewer, via a 15-year power purchase agreement (PPA) covering c.75% of the solar power generated. This contract will provide long-term returns for NESF and the portfolio is expected to generate stable power generation for a 40-year lifespan.   

Craig Love, Global Head of Structured Finance at Lightsource bp commented: “We’re excited to close the sale of this portfolio to NextEnergy Solar Fund. Lightsource bp prides itself on developing high quality solar assets that offer attractive, long-term returns to owners and investors.  This transaction further demonstrates our ability to structure projects with strong market appeal, providing financial and sustainability benefits to investors, off-takers and partners worldwide.” 

Ross Grier, Managing Director of NextEnergy Capital commented: “The Camden portfolio is an excellent fit for NextEnergy Solar Fund, and we’re pleased to be partnering with Lightsource bp on the acquisition of these two projects, which once fully operating bring the total installed capacity of our portfolio to 863MWp.” 

Lightsource bp expects to bring further UK projects to market in 2021 as an integral part of its development strategy, balancing growing its IPP platform with value creation via the M&A market.