Primrose Solar and EDF Energy have entered into a 15 year power purchase agreement (PPA) for their solar farms, which total 104MWp of capacity.
The deal gives Primrose Solar an inflation-linked guaranteed minimum price for power for the 15 years, which, according to the companies, will allow Primrose to receive a stable income from the projects.
John Cockin, EDF Energy’s director of business services said: “The risk that lenders attach to the volatile nature of wholesale power prices can limit a renewable developer’s ability to raise capital for expansion. By guaranteeing some of Primrose Solar’s income with a floor price, we are able to remove a significant portion of that risk for them.”
Primrose Solar has 10 solar farms throughout the UK, which contain 184MW of installed capacity. Of those 156MW are currently operating while 28MW are under construction.
Primrose currently owns the two largest solar farms in the UK, a 41MW solar farm in Canworthy Water in Cornwall and Southwick Estate Solar Farm, a 48MW solar farm near Fareham in Hampshire.
No financial details were released.
This deal arrives right before the end of the RO subsidies for projects over 5MW in the UK. After March 31, 2015, all projects that are greater than 5MW will cease to qualify for the scheme.