AUM in Action

European Pension Funds Back New Solar Strategy  

Norwegian pension fund KLP, a German occupational pension fund and a large Nordic pension fund are among the new investors in NextEnergy Capital’s new solar strategy fund which has raised US$480 million in commitments. The fund, NextPower V ESG, is a ten-year closed-ended vehicle that will invest in solar photovoltaic (PV) and energy storage infrastructure assets in OECD geographies. NPV ESG is classified as an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation, and at its investment ceiling is forecast to produce enough clean energy to power the equivalent of up to 750,000 households per year and avoid an estimated fossil fuel consumption of up to 150 million m3 of natural gas per year.  The fund is targeting US$1.5 billion with a US$2 billion hard cap. Michael Bonte-Friedheim, CEO and Founding Partner of NextEnergy Group, said: “NPV ESG’s first close represents an important milestone as the fund secures strong investor support from the get-go. 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.” 

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