NextEnergy Capital, through its fund NextPower III, has acquired two Virginia-based solar projects totaling 46MW from Urban Grid, for an undisclosed amount.
NextEnergy Capital stated that the two solar plants represent the first utility-scale solar venture in the US for its fund.
The solar plants include the 28MW Briel and 18MW Gardy’s Mill, which are located in Henrico and Westmoreland Counties, respectively. Covering nearly 300 acres of land, the plants generate enough clean electricity to power nearly 9,785 homes.
Urban Grid president Frank DePew said: “Urban Grid is excited to announce the acquisitions of these two projects by NextEnergy. Our team members successfully partnered previously with NextEnergy on several solar projects in the UK and we are pleased to continue that relationship with the sale of Briel Farm Solar and Gardy’s Mill Solar, facilitating NextEnergy’s expansion into the US market.
“Urban Grid looks forward to continuing to bring exceptional development projects and economic benefits to the Commonwealth of Virginia.
“We are grateful to the many individuals that made these projects possible, especially those at Henrico County and Westmoreland County for their support and cooperation throughout the development process.”
Estimated construction cost of the two projects is $40m and it is expected to create more than 120 jobs. Construction will begin immediately and commercial operation of the project could be achieved by next March.
The two solar projects are expected to provide nearly $21m in direct and indirect economic benefits to the state and could also help to avoid nearly 55,226 tons of CO2 emissions annually.
NextEnergy Capital CEO and founding partner Michael Bonte-Friedheim said: “We are very pleased to announce NextPower III’s first investments in the US solar market, where we expect to grow significantly in short order.
“We are also looking forward to strengthening the partnership with Urban Grid and developing our relationships within the local communities and institutions. Our track record of fostering mutually beneficial relationships in the communities in which we operate is something we are particularly proud of.”
Last June, NextEnergy Solar Fund entered into an agreement to acquire ten solar plants with a total installed capacity of 46.6MW. The solar plants were acquired from a single party, from which the company had previously acquired five solar plants.