UK Power Networks Services (UKPNS) has acquired UU Solar, securing a 70-asset solar, wind and hydro portfolio from SDCL Energy Efficiency Income Trust (SEEIT).
UKPNS, the commercial arm of the distribution network operator UK energy networks, the deal was unveiled today (May 7). The organization secured the 68.7MW portfolio in a £90.8m deal.
The portfolio is spread across 70 locations in the North West of England and consists mainly of solar assets. In terms of total generation, solar energy represents 90%, wind energy 9% and hydropower 1%.
The agreed price represents a 4.5% premium to SDCL’s valuation as of September 30, 2023. SEEIT originally acquired the portfolio in July 2022 in a deal worth approximately £100 million from United Utilities Group.
Jonathan Maxwell, CEO of investment manager SEEIT, said: “The sale is positive news for SEEIT as it makes a meaningful contribution to its objectives of reducing short-term borrowing, improving liquidity and focusing on investments in higher yielding assets that support the overall SEEIT’s return targets.
“UK Power Networks Services represents an excellent strategic buyer for a high-quality portfolio serving a key customer. We hope to build on our relationship with United Utilities and UK Power Networks Services in the future to deliver new opportunities for SEEIT.”
UU Solar supplies all existing on-site renewable electricity via solar, wind, mini-hydro and other technologies for leading UK water company United Utilities.
The portfolio is supported by a long-term power purchase agreement with United Utilities Water.
Director of UK Power Networks Services David Mitchell said: “Our vision is to deliver sustainable, reliable energy and we see this renewable energy portfolio as a natural fit. Our long-term goal is to increase our technology and geographic footprint in the renewable energy sector.
“We have been building our capacity in this sector over recent years and recently delivered one of the largest solar carports in Britain. This acquisition has been carefully negotiated to achieve a good price and is another example of how we are investing in large portfolios of key renewable UK assets.”
Solar Power Portal’s publisher, Solar Media, will host the British Solar Summit on June 4 and 5, 2024 in London. The event will explore Britain’s new utility and rooftop solar landscape, look at the opportunities within a GW+ annual market and much more.
