Solar and battery storage investment company Lynher Energy has signed a corporate power purchase agreement (CPPA) with a major UK company.
The off-taker, an undisclosed UK-based FTSE100 company, will receive 100% of the proceeds from the 27MW Twitch Hill Solar Park, which is expected to come online in September 2024. Solar energy giant Ethical Power has been contracted for Twitch Hill’s engineering and procurement and construction (EPC), as well as operations and maintenance.
“This CPPA represents a new step in realizing our renewable energy ambition. The agreement provides a solid foundation for Lynher Energy to continue expanding our capacity for the foreseeable future. Working with a credit-worthy FTSE100 company reaffirms our ability to make a meaningful contribution to the fight against climate change while delivering value for our stakeholders,” said Chris Sparrow, Managing Director of Lynher Energy.
He emphasized the profitability of the 15-year deal, noting that “the agreement is also intended to provide a high degree of certainty about the cash flows from this investment in the coming years.”
CPPAs and corporate financing for solar energy
With the increasing urgency for businesses to decarbonize, not to mention rising energy costs, PPAs are becoming an increasingly attractive option for companies 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 centers with energy generated by Irish solar farms. With their high electricity demands, data centers are ideal candidates for clean energy PPAs.
Meanwhile, solar developers are increasingly seeking new and important financing options to develop or expand solar projects. British Solar Renewables (BSR) has recently succeeded in this arena, securing its first portfolio financing through a facility from the Commonwealth Bank of Australia and Lloyds Bank. The newly funded portfolio includes five solar assets in the UK and Australia, with a combined annual solar production of 132 GWh.
