Quinbrook Infrastructure Partners (a specialist global investment manager focused exclusively on the infrastructure needed for the energy transition) announced two long-term offtake agreements with Tesco and Shell covering 100% of the solar power generation from its Cleve Hill Solar Park (“Cleve Hill”). Cleve Hill, a 373MW solar + 150MW battery storage project, is the largest ever constructed in the UK and is due to commence operations in early 2025.
Quinbrook’s 15-year Power Purchase Agreement (PPA) with retailer Tesco is the largest solar corporate PPA executed in the UK to date. Once operational, it will account for 65% of the expected solar generation from Cleve Hill.
Shell (a major power and renewables certificate trader and provider of route-to-market services) has signed a ten-year Route to Market agreement with Quinbrook to manage 100% of the capacity that was secured by Quinbrook under a 15-year Contract for Difference (CfD) in July 2022 as part of the UK’s Allocation Round 4, equivalent to 35% of the expected solar generation from Cleve Hill. This CfD contract award was the largest received by a UK solar project as part of the biggest-ever round of the UK government’s flagship auction scheme.
These offtake agreements provide long-term index-linked revenues for Cleve Hill, offering revenue certainty for Quinbrook investors and a hedge against rising inflation. They deliver on the key features of a sustainable infrastructure investment, helping to accelerate the UK’s energy transition.
Cleve Hill was granted development consent in May 2020 by the UK Department for Business, Energy & Industrial Strategy. It was the first of its kind to be approved as a Nationally Significant Infrastructure Project. Cleve Hill (once operational) is expected to generate enough renewable power each year to meet the power needs of 102,000 UK homes and help reduce carbon emissions by more than 142,000 tons in the first year of operations, equivalent to the carbon sequestered by more than 2.3 million tree seedlings grown for 10 years.
Along with the climate impact, this project also seeks to deliver a net gain of over 65 percent in biodiversity on site and is also expected to support over 2,300 direct and indirect jobs and generate more than GBP 143 million in local Kent socio-economic benefits over its lifetime.
KEY QUOTES:
“The offtake agreements secured with Tesco and Shell are a testament to this landmark renewables project for the UK and represent a significant milestone in delivering long-term inflation-linked revenues for our investors, 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 + battery storage projects.”
-Keith Gains, Managing Director and UK regional lead for Quinbrook
“We’re delighted to be announcing such a significant step in our journey towards carbon neutrality across our own operations by 2035. Cleve Hill solar park, with its ability to generate up to 10% of our UK electricity demand, joins a number of other Power Purchase Agreements we’ve announced over the last five years. With its ability to provide vital energy storage infrastructure, it’s a key part of the renewable energy strategy in the UK and further evidence of our commitment to tackle climate change and source green electricity from innovative projects like this.”
-Ken Murphy, Group Chief Exec, Tesco
“Shell is pleased to work with Quinbrook to manage a proportion of the Cleve Hill capacity and further expand our UK PPA portfolio. Combined solar and battery storage projects such as this have a vital role to play in driving forward the UK’s transition to a flexible and low-carbon energy future.”
-Rupen Tanna, Head of Power and Systematic Trading for Shell Energy Europe Limited
