NextEnergy Capital, a solar-focused fund manager, has signed one of the UK’s largest Power Purchase Agreements (PPA) with Anglian Water.
The 20-year contract covers 90% of the electricity generated by Llanwern Solar Farm, the largest operational solar site in Wales, located in Newport, with a capacity of 75 MW.
Llanwern Solar Farm, which spans 260 acres and powers over 20,000 homes annually, plays a key role in renewable energy.
The PPA is a “sleeved” contract, a complex structure involving NextPower UK ESG, a subsidiary of NextEnergy, as the producer, EDF for electricity balancing, and SSE as the energy supplier to Anglian Water.
The arrangement involves NextPower selling the solar farm’s production to EDF, which stabilises the output into consistent energy blocks. These blocks are then sold to SSE, which delivers energy directly to Anglian Water, ensuring a steady supply that meets the company’s needs.
This setup aims to convert intermittent renewable energy into a predictable resource, supporting Anglian Water’s decarbonisation goals while providing NextPower with a secure, inflation-linked revenue stream.
NextPower UK ESG focuses on acquiring solar and energy storage projects, generating revenue through long-term, secure contracts.
Since its launch in 2022, the fund has exceeded profit expectations and shown significant asset growth. Investors benefit from stable cash flows while contributing to the UK’s energy transition.
Michael Bonte-Friedheim, CEO of NextEnergy Group, noted that “NextPower UK ESG plays a crucial role in the UK’s transition to carbon neutrality while contributing to the country’s energy security through independent sources.”
David Riley, Head of Carbon Neutrality at Anglian Water, emphasised the importance of renewable energy with “direct physical traceability to the source,” making the process more transparent and efficient.
