Acquisition of largest Agrivoltaic PV project in Italy
Once energised, the project aims to achieve the restoration of 140 hectares of land with at least 70% of the land dedicated to agricultural activities while generating clean electricity from solar PV. The project has also recently been awarded a 20-year contract for difference from the GME DM Agrivoltaico Auction for 100% of its volume.
This acquisition marks the eighth investment that the Fund has made and increases the committed capacity to date to 670MW, of which c.220MW is fully operational, with an additional 230MW due to be energised shortly. A further 451MW of Solar PV and BESS is in advanced negotiation and once fully acquired it will take NPV ESG to over 1GW of committed capacity.
To date, the NPV strategy has secured $843 million (including $218 million for co-investments) in total commitments with investors ranging from a UK LGPS investment pool, a Dutch pension fund, a Japanese insurance company, alongside re-ups from existing NextPower III ESG investors, including KLP, a German occupational pension fund, and a large Nordic pension fund.
The portfolio’s first operational assets are expected to pay dividends in the second half of 2025, NPV ESG leverages NEC’s track record of successful investments in the solar+ infrastructure sector since 2007, with over 530 utility-scale projects acquired and previous Funds delivering superior financial returns to investors. NPV ESG continues to maintain a disciplined contracted revenue model with robust, credit-worthy counterparties enabling the Fund to generate long-term stable cashflows.
The project is an advanced AgriPV project that co-locates utility-scale solar PV with agricultural land use to help maintain and improve soil productivity alongside other traditional land uses that has been supported throughout by both Coldiretti, the largest agricultural farmer association in Italy, and Legambiente, an Italian environmentalist association. AgriPV systems offer substantial opportunities, which include enhancing land productivity, water conservation and mitigation of extreme weather for both crops and grazing animals. Additionally, AgriPV provides farmers with diversified income streams, reducing their financial dependency on traditional agricultural markets and contributing to the resilience and stability of local communities.
Ross Grier, Chief Investment Officer at NextEnergy Capital, said: “This transaction marks a significant milestone for NextPower V and aligns closely with the fund’s principles of sustainability, innovation, and responsible investment. The transaction required the relentless work of many varied stakeholders across the NextEnergy Group and showcases the benefits of having access to the entire solar value chain from investment to development, being able to deliver a high-quality project in a de-risked fashion for our investors. I am proud of the teams for driving forward this innovative, industry leading, advanced AgriPV project as we continue to push towards the global clean energy transition.”
Antonio Salvati, Managing Director NextPower V ESG at NextEnergy Capital, commented: “Italy remains a key market for NextPower V as it offers one of the highest irradiance areas in Europe supported by well-developed infrastructure. NextEnergy Capital continues to have a significant local presence in Italy supported through its 79 employees located across our three Italian offices. The transaction highlights the multiple benefits AgriPV projects can bring to the local area such as nature enhancement, land productivity, local engagement and the clean green energy. This is the largest transaction to date for NextPower V in Italy and provides NextPower V with an innovative Agri-PV opportunity, ensuring it is resilient and prepared for future AgriPV mandates in Europe and other markets.”
