| Work Detail |
Quinbrook Infrastructure Partners announces two long-term agreements covering 100% of solar power generation at Cleve Hill Solar Park. British supermarket retailer Tesco has signed a 15-year agreement covering 65% of generation and Shell will manage remaining capacity under 10-year route-to-market deal.
Tesco Stores Limited and Shell Energy Europe Limited have signed major offtake agreements with Cleve Hill Solar Park, a 373 MW solar and 150 MW battery storage project under construction in Kent, England. The 15-year power purchase agreement (PPA) with grocery retailer Tesco is the largest solar corporate PPA executed in the United Kingdom to date, claims project owner Quinbrook.
The deal with Shell comprises a ten-year route-to-market agreement which will see the global energy giant manage 100% of the capacity that was secured for Cleve Hill under a 15-year Contract for Difference (CfD) auction in 2022. CfDs have been a key part of the UK renewable energy strategy since the first allocation round opened in 2014. Both offtake agreements provide long-term index-linked revenues for Cleve Hill.
Cleve Hill Solar Park was the first ever utility-scale solar project in the United Kingdom to secure a development consent order (DCO) from central government. The project was green lit by the UK government in 2020. Quinbrook acquired the project, which was initially developed as a join enterprise between Wirsol and Hive Energy, in 2021. Commissioning at Cleve Hill is scheduled for early 2025.
In a statement, Keith Gains, managing director and UK regional lead for Quinbrook, said the agreements with Tesco and Shell “represent a significant milestone in delivering long-term inflation linked revenues for our investors,” as well as supporting new construction and jobs.
“Cleve Hill has set new benchmarks for UK solar and helps Quinbrook further its efforts to support the UK’s decarbonization goals and energy independence through large-scale solar and battery projects,” he said.
Ken Murphy, group chief executive at Tesco, said Cleve Hill has the ability to generate up to 10% of the retailer’s UK electricity demand. Tesco is the largest grocery retailer in Great Britain. |
