NextEnergy Solar Fund : ANNUAL REPORT 2023

Generating a more sustainable future

Annual Report

for the year ended 31 March 2023

NEXTENERGY SOLAR FUND LIMITED Annual report for the year ended 31 March 2023 |

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Our Objectives

Investment Objective

To provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, through

a diversified portfolio of solar energy infrastructure assets with the addition of complementary technologies, such as

energy storage.

Strategic Objectives

Investment

Expand and strengthen the portfolio in line with the Company's Investment Policy.

Enhance growth and diversification through the introduction of solar+ technologies (such as energy storage) and international

solar assets.

Operational

Consistently achieve operational outperformance of the portfolio through active asset management.

Pursue continuous improvement in the management of operating costs associated with the portfolio.

Environmental

Contribute towards a net zero sustainable future and help mitigate climate change.

Enhance local biodiversity in the areas where we operate.

Social

Provide a positive social impact.

Contribute to lowering power prices in the UK and other markets where we operate by increasing energy supplied to the energy market.

Continue to actively engage with and support the communities located close to our solar assets.

Governance

Act in a manner consistent with our values of integrity, fairness

and transparency.

Maintain strong and constructive relationships with our shareholders and other key stakeholders.

Contents

OVERVIEW	5
NextEnergy Solar Fund Overview	5
Performance Highlights	6
Snapshot of Our Diversified Portfolio	7
Why Invest in NextEnergy Solar Fund?	9
STRATEGIC REPORT	10
Chairman's Statement	10
Our Business Model	18
Five Year Record	22
Our Investment Strategy and Track Record	23
Investment Adviser's Report	28
Operating Portfolio	44
Portfolio Generation Performance	46
Sustainability and ESG	48
Stakeholder Engagement	68
Risks and Risk Management	70
Going Concern and Viability	74
GOVERNANCE	76
Introduction from the Chairman	76
Governance Framework	77
Board of Directors	78
Corporate Governance Statement	80
Directors' Remuneration Report	92
Audit Committee Report	96
Directors' Report	100
Statement of Directors' Responsibilities	103
Independent Auditor's Report	104
FINANCIAL STATEMENTS	110
Statement of Comprehensive Income	110
Statement of Financial Position	111
Statement of Changes in Equity	112
Statement of Cash Flows	113
Notes to the Financial Statements	114
ADDITIONAL INFORMATION	141
Alternative Performance Measures	141
General Shareholder Information	145
Glossary and Definitions	148
Corporate Information	153

NextEnergy

Solar Fund Overview

A specialist solar+ fund listed on the premium segment of the London Stock Exchange and a constituent of the FTSE 250

Provides shareholders with attractive risk- adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of utility-scale solar energy and energy storage infrastructure assets

Managed by solar specialists:

• NextEnergy Capital, Investment Adviser

• WiseEnergy, Asset Manager

Both leading managers in the solar energy infrastructure sector

Diversified portfolio:

• 99 operating solar assets
• 1 International private equity solar fund investment
• 2 European solar co-investments
• 2 joint venture partnerships into UK standalone energy storage

Powering the equivalent of 242,000 homes (equivalent to Nottingham and Brighton combined) with renewable energy for the year

Continuous asset outperformance since IPO