5 GW Solar & Storage Joint Venture In UK

• Schroders Greencoat UK Solar and Innova Renewables Limited have announced a solar JV
• ISG Renewables will target to develop 5 GW solar and storage capacity in the UK over next 3 years to 5 years
• ISG targets contracted revenues through CfD, private wires and corporate PPAs and acquire projects for its portfolio

Solar energy investor Schroders Greencoat UK Solar and renewables developer Innova Renewables Limited have formed a new joint venture (JV) called ISG Renewables to target construction and operation of 5 GW solar and storage capacity in the UK over the next 3 years to 5 years.

Schroders plans to provide long-term capital to ISG along with long-term asset optimization expertise, while Innova will bring its construction and development project portfolio to the JV. The 10 MW operational Carn Nicholas Solar Park in Swansea, Wales from Innova's portfolio is ISG's maiden acquisition.

Innova says it has over 60 DNO and grid connected sites under development in the UK with a combined solar and storage capacity exceeding 20 GW.

Schroders Greencoat's 1^st solar fund is Greencoat Solar I LP that was launched 'in response to investor demand for an unlisted product investing in operating UK solar farms in 2016'. Its UK solar business manages £1.6 billion capital, Schroders Greencoat shared. It was previously known as Greencoat Capital (see Europe PV News Snippets).

ISG will target a proportion of contracted revenues through contracts for difference (CfD), private wires and corporate power purchase agreements (PPA) under its business model. It plans to acquire more projects going forward.

Additionally, the JV will also take over 3^rd party developed projects across its development lifecycle to expand its development and construction portfolio.

"This opportunity brings further long-term inflation protected cashflows to our investor base, building on our existing 1.1 GW portfolio of UK solar assets," said Schroders Greencoat Partner Lee Moscovitch. "Looking to the future, ISG Renewables is well placed to contribute to the UK's leadership position within the global energy transition, and to help meet society's need for clean, affordable and reliable power."

In 2020, Innova also formed a utility scale solar joint venture partnership with ReneSola, now Emeren, to co-develop over 100 MW capacity in the UK as the country targets to develop 70 GW solar capacity by 2035.