NextEnergy Solar Fund, the specialist solar and energy storage climate impact fund, with a combined installed power capacity of 865MW, is pleased to announce that it has successfully secured additional subsidised solar contracts in the UK.
The Company has entered into contracts on 86MW of planned additional capacity through the fourth Contracts for Difference (CfD) Allocation Round (AR4) announced last month
The CfD scheme is the government’s main mechanism for supporting low-carbon electricity generation and further demonstrates the crucial role utility-scale solar plays in the UK’s energy mix, helping drive forward net zero ambitions and increasing the UK’s energy independence and energy security.
The CfDs have been secured for 100% of the generating capacity of Whitecross (36MW) and Hatherden (50MW), the Company’s latest new-build UK solar projects. The CfDs last for 15-years, are index linked to inflation (CPI) annually, and are scheduled to commence from 31 March 2025 at the AR4 solar PV strike price of £45.99/MWh (set in 2012 equivalent prices).
Whitecross solar farm is currently under construction in Lincolnshire and is expected to be energised in the first quarter of 2023. Grid connection and construction mobilisation works are underway for Hatherden solar farm in Hampshire, which is anticipated to be energised in the first half of 2023.
Ross Grier, UK Managing Director, NextEnergy Group commented:
“The inclusion of solar PV in AR4 demonstrates the importance of this source of clean energy generation to the transition to net zero and we are delighted to have secured CfDs for NESF through the competitive auction process. By providing long term revenue stability for the new solar plants, the CfDs complement NESF’s continued delivery of attractive, risk-adjusted returns for investors whilst also achieving low-cost price security for energy consumers. Our ability to secure CfDs further underlines our market-leading position in the UK solar sector.”
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