Solar and battery storage investment firm Lynher Energy has signed a corporate power purchase agreement (CPPA) with a major UK company.
The off-taker, an unnamed UK-based FTSE100 company, will receive 100% of the output from the 27MW Twitch Hill Solar Park, which is expected to come online in September 2024. Solar energy major Ethical Power is contracted for the engineering, procurement and construction (EPC) of Twitch Hill, as well as operation and maintenance.
“This CPPA represents another step in the realisation of our ambition in the renewable energy field. The agreement provides a solid foundation for Lynher Energy to continue to grow our capacity in the near future. Working with a creditworthy FTSE100 company reaffirms our ability to make meaningful contributions to the fight against climate change while providing value for our stakeholders,” said Chris Sparrow, a director of Lynher Energy.
He emphasised the profitability of the 15-year deal, noting that “the agreement also is designed to provide a high level of certainty of cashflows on this investment for years to come.”
CPPAs and corporate financing for solar
With the growing urgency for businesses to decarbonise, not to mention soaring energy costs, PPAs are becoming an increasingly attractive option for businesses looking to secure a clean energy supply.
Greek energy company Mytilineos recently signed two long-term PPAs with Keppel DC REIT to supply two Dublin-based data centres with energy generated from Irish solar farms. With their high electricity demand, data centres are ideal candidates for clean energy PPAs.
Meanwhile, solar developers are increasingly seeking novel and significant finance options to develop or expand solar projects. British Solar Renewables (BSR) has recently succeeded in this arena, having secured its first portfolio financing thanks to a facility from Commonwealth Bank of Australia and Lloyds Bank. The newly funded portfolio comprises five solar assets in the UK and Australia, with a combined annual solar output of 132GWh.
