Primrose Solar signs over 100 MW of Solar on Power Purchase Agreements with EDF Energy
Primrose Solar has signed 15 year Power Purchase Agreements ('PPA') with EDF Energy for existing solar farms totalling 104 MWp (Megawatt Peak) of capacity.
Under the deal EDF Energy provides an inflation-linked guaranteed minimum price for power over the full term of the contract. This price floor improves Primrose Solar’s ability to raise capital against the projects, as it increases the level of fixed revenues that lenders use to size debt, and improves project returns.
Giles Clark, CEO, Primrose Solar, said: “We're very pleased to be working with EDF Energy as a provider of secure, long-term agreements for the sale of the power that we generate at our solar farms. Working with a high credit rated entity such as EDF Energy is particularly attractive to Primrose Solar.”
John Cockin, EDF Energy’s Director of Business Services, commented: “We’re always keen to work with low-carbon generators. 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’re able to remove a significant portion of that risk for them. It also demonstrates EDF Energy’s commitment to supporting the growth of independent renewable energy generators.”
Advising for Primrose was Gus Wood of Wragge Lawrence Graham & Co LLP.
For more information contact:EDF Energy Media
Media Relations Team
Notes to editors
About Primrose Solar
Primrose Solar owns and operates solar farms throughout the UK, working closely with local communities and acting as a responsible steward of the land where the parks are located. Primrose has 10 solar farms representing 184 MW of installed capacity, of which 156 MW are now operating with a further 28 MW under construction. Primrose Solar now owns two of the largest solar farms in the UK with a 41 MW site at Canworthy Water in Cornwall and the 48 MW Southwick Estate Solar Farm near Fareham in Hampshire.
Primrose Solar was founded in November 2013 when Pioneer Point Partners and York Capital Management formed a partnership to build a major UK solar company. Pioneer is a specialist private equity investor with a core focus on the energy and environment sectors across Western Europe. York is a $25bn global investment manager, with an established presence in Europe.
EDF Energy is one of the UK’s largest energy companies and the largest producer of low-carbon electricity, producing around one-fifth of the nation's electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. The company supplies gas and electricity to 6 million business and residential customer accounts and is the biggest supplier of electricity by volume in Great Britain.
EDF Energy’s safe and secure operation of its eight existing nuclear power stations at sites across the country makes it the UK’s largest generator of low carbon electricity. EDF Energy is also leading the UK's nuclear renaissance and has published plans to build four new nuclear plants, subject to the right investment framework.
These new plants could generate enough low carbon electricity for about 40% of Britain’s homes. They would make an important contribution to the UK’s future needs for clean, secure and affordable energy. The project is already creating business and job opportunities for British companies and workers.
Through Our Better Energy Ambitions, EDF Energy has developed one of the biggest environmental and social programmes of any British energy company.
In 2014 EDF Energy received seven ‘Big Ticks’ in the Business in the Community (BITC) Responsible Business Awards. In 2013 EDF Energy received the Environmental Leadership for Behavioural Change Award in the national Environment and Energy Awards and was highly commended in the first ever pan European Corporate Social Responsibility Awards scheme for its Sustainable Schools programme – the Pod.
EDF Energy is part of EDF Group, one of Europe’s largest power companies. The company employs around 15,000 people at locations across the UK.
To find out more about the UK's energy challenges look at www.edfenergy.com/energyfuture/