The hybrid PPA covers a 55MW solar farm co-located with 40MW/80MWh of battery energy storage capacity. Image: Getty Images.
Equity fund DIF has announced the “UK’s first” bankable and unsubsidised co-located Power Purchase Agreement and optimisation agreement (hybrid PPA) for solar.
The hybrid PPA, which has been supported by software and advisory business Pexapark, covers a 55MW solar farm with 40MW/80MWh of battery energy storage capacity co-located. This site will be located in Leighton Buzzard, Bedfordshire, and will cover a 10-year term.
In a statement made by the business, it confirmed that “the market-first hybrid PPA will also provide secure and bankable revenue streams for both the solar farm and storage system”.
This agreement also represents a key aspect of the market within the UK. In order to optimise and increase revenue output of many solar farms, companies are looking to co-location of energy storage. This also helps to boost the flexibility of their assets in the post-subsidy market.
Showcasing this rising popularity, Pexapark highlighted that “45% of all solar planning permissions submitted in the UK in the past two years have been for hybrid systems encompassing storage”.
By providing secure and bankable revenue streams, the DIF hybrid PPA provides a model for the wider market to follow in order to reach scale amid the broader energy transition across GB and the EU, a statement read.
Brian Knowles, director of storage and flexibility at Pexapark, said: "We’d like to congratulate DIF on this pioneering PPA, which marks the first of its kind in the UK and Europe more widely.
“The innovative nature of this agreement reflects our commitment to finding new PPA solutions for unsubsidised renewable energy developers and offtakers, with contracted revenues that offer attractive returns and low risk profiles for investors.”
DIF Capital Partners has been exploring various opportunities for co-location to boost its portfolio. On 23 February, Solar Power Portal reported that the firm, together with ib vogt, had agreed to acquire a 100% interest in the largest UK co-located solar and battery portfolio from Cero Generation and Enso Energy.
The portfolio is recognised as the UK’s largest co-location portfolio of solar and battery energy storage, consisting of seven sites and a total capacity of 720MW. Of this, 380MW is solar and 340MW is battery energy storage. Solar EPC and O&M services will be provided by construction engineering company ib vogt.
