- NextPower UK ESG secured a 20-year deal with Anglian Water to supply 90% of electricity from the 75 MW Llanwern Solar Farm, the largest in the UK.
- The “sleeved” PPA involves EDF managing and stabilising the power, with SSE delivering the energy directly to Anglian Water.
- The agreement supports Anglian Water’s decarbonisation goals and guarantees NextPower stable, inflation-linked revenue.
NextPower UK ESG, a subsidiary of NextEnergy Capital, has signed a 20-year electricity sales agreement with Anglian Water. The deal covers 90% of the electricity from Llanwern Solar Farm, the UK’s largest solar farm.
Llanwern Solar Farm, located in Newport, Wales, spans 260 acres and generates 75 megawatts (MW) to power over 20,600 homes annually. Anglian Water entered this agreement, one of the UK’s largest Power Purchase Agreements (PPA), to meet its decarbonisation targets while securing stable, inflation-linked revenue for NextPower.
The contract uses a “sleeved” PPA model. NextPower sells the solar energy to EDF, which manages and stabilises it, converting it into consistent energy blocks. EDF then sells these blocks to SSE, which directly supplies the electricity to Anglian Water. This setup aligns Anglian Water’s energy needs with a reliable renewable source.
This agreement turns intermittent solar power into a predictable energy resource. The structure provides Anglian Water with secure, traceable renewable energy while ensuring a steady cash flow for NextPower. David Riley, Head of Carbon Neutrality at Anglian Water, praised the deal for delivering renewable energy with “direct physical traceability” to the solar farm, enhancing transparency.
NextPower UK ESG focuses on solar energy and energy storage projects. Since its 2022 launch, the company has acquired and developed solar assets and battery storage systems, generating revenue through long-term contracts. NextPower’s fund has exceeded expectations, delivering two profit distributions and significant net asset value growth.
The Llanwern Solar Farm strengthens NextPower’s portfolio, offering a reliable income source while advancing the UK’s clean energy goals. Michael Bonte-Friedheim, CEO of NextEnergy Capital, highlighted the importance of this agreement, stating, “NextPower UK ESG plays a key role in the UK’s carbon neutrality efforts and energy security.”
This deal underscores the growing role of renewable energy in the UK’s power sector. Innovative energy models now offer reliable, long-term solutions for large consumers like Anglian Water while pushing the country toward a more sustainable future.
The partnership between NextPower, EDF, and SSE illustrates how collaboration drives progress in the energy transition. Their efforts ensure Anglian Water receives renewable energy that aligns with its consumption needs, helping it achieve carbon neutrality.
As energy costs rise and climate change concerns grow, long-term renewable energy contracts like this demonstrate their value. Companies seeking sustainable energy solutions will increasingly turn to models like the NextPower-Anglian Water agreement, shaping the future of the UK’s energy landscape.
NextPower’s success with this deal sets a strong precedent for future solar projects and PPAs in renewable energy. This agreement shows that solar energy and innovative contract models will play a central role in the future of the UK’s energy industry.