NextEnergy Capital raises €150m to invest in solar projects in Italy

NextEnergy Capital Group (NEC), a solar investor and operator, has raised €150m during the first close of NextPower II from Prudential Assurance Company, the UK subsidiary of Prudential.

NextPower II is a private equity fund focused on acquiring operating solar power projects in Italy and is intending to raise more capital from new investors soon.

The fund aims to unite the fragmented solar market in Italy, which has the second largest installed base of operating solar plants in the EU and is the fifth largest market across the globe.

Most of Italy’s solar assets were built between 2010 and 2012, and have been operating for at least four years.

NextEnergy Capital Group founding partner and CEO Michael Bonte-Friedheim said: "We are delighted with a €150m first close of our new fund, established to pursue the attractive long- term opportunity in Italian solar.

"We have a strong acquisition pipeline and expect to announce our first investments shortly. We look forward to securing new investors in due course.

"Adding a large-scale private equity vehicle to our stable of solar activities – which already include the leading solar operating asset manager and largest LSE-listed solar energy fund – underlines NEC’s status as the leader in European solar."

NEC, which is currently managing the NextPower II fund, has identified a portfolio worth around €1bn for the fund.

NextEnergy Capital Group managing partner and CFO Aldo Beolchini said: "NextPower II is an exciting opportunity – we intend to lead the consolidation of the Italian solar sector, a large market with some 19,000MW of installed capacity which contributes significantly to power generation in Italy.

"We have been pursuing this opportunity since we began developing and investing in solar projects in Italy in 2008.

"Our unique expertise, both in solar and in Italy, will enable us to identify attractive acquisition opportunities, execute multiple transactions in parallel and drive operating and technical improvements as well as cost and financing synergies. We will drive an increased competitiveness in the Italian solar sector."