NextEnergy Solar Fund buys solar power plant for GBP10.5m

NextEnergy Solar Fund (NESF) has announced the signing of the share purchase agreement to acquire a special purpose vehicle owning the rights to construct 9.4MW Gover Farm Power Plant, a solar power plant located in Cornwall, UK.

Gover Farm will be constructed under an Engineering, Procurement and Construction (EPC) contract negotiated by NESF. Under the terms of the EPC, the plan is to achieve preliminary acceptance certificate by August 2014. The plant will be accredited under the 1.4 Renewable Obligation Certificate regime.

NESF has committed to acquire the special purpose vehicle, subject to certain timing and performance criteria being achieved, for a total consideration of up to £10.5 million (US$17.8 million).

In April, NextEnergy Solar Fund raised GBP85.6 million in a share placing and offer for subscription, with the proceeds earmarked for buying up UK photovoltaic solar assets. The firm initially hoped to raise £150 million, but chief executive Michael Bonte-Friedheim said that this was reduced as a consequence of a busy fundraising schedule and that the firm expected to grow to £750 million over the next three years.

The fund now has three assets after acquiring two operating solar plants in May. It has now invested about 30% of the proceeds raised in its initial public offering two months ago.