DIF Capital Partners and ib vogt have landed a contract with Engie Global Energy Management & Sales for a 57 MW solar PV and 40 MW battery energy storage system (BESS) project, which their advisor Pexapark terms as the UK's 1st 'bankable and unsubsidized co-located power purchase agreement (PPA) that's also first of its kind in Europe.
The 10-year PPA, according to a DIF statement reported by local media, is related to the company's hybrid solar and storage facility in the UK's Leighton Buzzard in Bedfordshire.
Engie says the deal comprises a 10-year upstream PPA for a 55 MW solar farm and a 10-year contract for BESS optimization services. The project is expected to become operational by the end of 2023. It will also provide secure and bankable revenue streams for both the solar farm and the storage system, the project partners added.
The UK market is increasingly opting for solar and co-located storage projects that helps provide round-the-clock power. DIF reportedly stated that 45% of all of solar planning permissions submitted in this market over the last 2 years cover this business model.
Pexapark's Head of PPA Transactions Mathieu Ville believes that well-structured PPAs can yield substantially better revenues than subsidies.
In June 2023, DIF achieved financial closure on 7 ready-to-build (RTB) solar sites with a combined capacity of 380 MW PV and 340 MW BESS, along with its 10% co-shareholder ib vogt in the UK which the duo acquired in February 2023 from a joint venture between Cero Generation and Enso Energy (see DIF Capital Acquires UK's Largest Co-Located Solar & Battery Projects).