Quinbrook has signed 2 separate offtake agreements for its Cleve Hill Solar Park in the UK
Tesco plans to cover up to 10% of its UK electricity demand with its 15-year PPA for the project
Shell’s 10-year agreement is equivalent to 35% of the expected solar generation from Cleve Hill
Global energy transition investment manager Quinbrook Infrastructure Partners has announced leading private firms Tesco and Shell as the offtakers for power generated from what is touted as the largest ever consented solar PV and battery energy storage project in the UK.
The 2 agreements cover 100% of the solar power generation from the project.
The Cleve Hill Solar Park with 373 MW PV and 150 MW storage capacity has been under construction since May 2023 (see UK’s ‘Largest’ Solar Farm Enters Construction). It is scheduled to start commercial operations in early 2025.
The 15-year power purchase agreement (PPA) with retailer Tesco is the largest corporate PPA executed in the UK to date, according to Quinbrook. It will account for 65% of the expected solar generation from the project. For Tesco, this project can generate up to 10% of its UK electricity demand.
Energy giant Shell has entered a 10-year Route to Market agreement with Quinbrook, equivalent to 35% of the expected solar generation from Cleve Hill.
Quinbrook said that both the offtake agreements provide long-term index-linked revenues for the project, while offering revenue certainty to investors and a hedge against rising inflation.
“The offtake agreements secured with Tesco and Shell are a testament to this landmark renewables project for the UK and represent a significant milestone in delivering long-term inflation linked revenues for our investors, supporting new construction and jobs,” said Quinbrook Managing Director and UK Regional Lead Keith Gains. “Cleve Hill has set new benchmarks for UK solar and helps Quinbrook further its efforts to support the UK’s decarbonisation goals and energy independence through large-scale solar + battery storage projects.”
Once online, the Cleve Hill project is expected to power the equivalent of over 102,000 homes. Quinbrook won this project under the UK government’s contracts for difference allocation round 4 (see UK’s CfD Round 4 Secures ‘Almost’ 11 GW RE).