NextEnergy European Solar Utility Plc, an investment firm managed by NextEnergy Capital, is targeting a valuation of as much as 2 billion euros ($2.2 billion) within four years as it eyes solar parks in Spain and Italy.
The fund, which is holding an initial share sale in London, seeks as much as 2 gigawatts of generation capacity, Michael Bonte-Friedheim, chief executive officer and co-founder of NextEnergy Capital, said Tuesday by phone. It remains on course to raise 300 million euros by mid-July, he said.
Investors such as NextEnergy are shrugging off European market uncertainty as Greece nears economic meltdown, banking on the steady revenues and high dividend yields that solar provides.
“If you look at the recent gyrations over the past months and due to Greece over the past one to two days, the listed solar sector has behaved in an uncorrelated way,” Bonte-Friedheim said. “The underlying income generated by these assets isn’t determined by short-term political movements. They have a very stable income flow.”
The fund will channel money into operational solar facilities in Spain and Italy, where a boom in the technology led to retroactive cuts in state subsidies. That allowed governments to introduce legislation they’re now “comfortable” with, reducing the risk of future policy changes, the CEO said.