Conergy, one of the world’s leading PV solution and service providers, and Cardiff-based developer Camborne Energy, has announced the sale of a portfolio of planned solar farms to Primrose Solar, which is backed by global investment management firm York Capital Management and London-based private equity firm Pioneer Point Partners LLP.
The deal includes options on four additional projects, totaling 50 MW in capacity, that are currently in planning.
The 40 MW portfolio is among a growing number of sales by developers of British solar farms to investors, both pre-construction and post-completion. Some 600 MW of new plant is expected to be built in the first quarter of 2014, equivalent to the generation capacity of the Wylfa nuclear power station in North Wales, which is scheduled to be retired from service next year.
This is the first sale of solar plant by a new partnership between Conergy and Camborne Energy. Conergy, which built Britain’s first large solar farm in Nottinghamshire in 2010 and has supplied or built solar farms worldwide totaling 530 MW in output, designed the solar farms while Camborne worked with landowners and secured planning permissions.
Robert Goss, MD Conergy UK, said: "As solar scales up to become a significant player in the UK energy mix, new types of investors are entering the market looking for bankable products. Conergy's partnership with Camborne has delivered a portfolio of plant in the right locations with predictable long-term returns thanks to high quality design and build. This approach is ideal for long-term investors and should attract more capital to the growing utility-scale segment."
Jonathan Townend, MD Camborne Energy, said: "We have been able to offer our landowners and the buyers the benefits of an integrated approach – Camborne Energy’s professional development services, married with Conergy’s technical expertise and construction capabilities. This is our first group sale of assets from our larger portfolio currently under development.”
Solar farms earn revenue from power purchase agreements (PPAs) at a typical rate of 5p per kilowatt hour, 33% of the average UK retail price of electricity. Conergy, which was recently acquired by Florida’s Kawa Capital Management, will build, manage and operate the plant under the terms of the agreement.
The five solar farms in the sale have all been approved by councils for construction and the completed plant will not be visible to the general public. The largest, at 15 MW, will be located at Nova Scotia Farm, close to Great Yarmouth, while a 7MW solar farm will be built close to Cardiff. Three plants of 3MW, 6MW and 9MW will meanwhile be built on various fields owned by the same Dorset landowner.
The construction will involve the stationing of solar panels on elevated racks to allow sheep to graze underneath, increasing the productivity of the land. The sites will employ special CCTV cameras to spot the difference between a harmless sheep and an intruding human. Combined, the plants will generate enough electricity to supply more than 11,500 homes.
Construction is expected to be complete by the end of March 2014. Technology suppliers of solar panels, mounting systems and inverters have yet to be announced. Local contractors will also be sought for cable supply, fencing, grid connection, health and safety, landscaping and security.
