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Quinbrook secures offtake agreements with Tesco and Shell for 363MW Cleve Hill Solar Park

Publish Time:2024-10-17 Sources:
The Cleve Hill Solar Park electrical compound, including the area for the project substation and battery storage systems. Image: Cleve Hill.

Quinbrook Infrastructure Partners, a global investment manager, has signed two long-term offtake agreements acing for 100% of the solar power generated at Cleve Hill Solar Park.

Cleve Hill, a 373MW solar 150MW battery storage project, and the largest consented development in the UK, is due to start operations in early 2025. The project was granted development consent in 2020 and was the first of its kind to be approved as a Nationally Significant Infrastructure Project (NSIP).

Quinbrook has signed two separate agreements for the development. The first, acing for 65% of the expected solar generation from Cleve Hill, is a 15-year power purchase agreement (PPA) with retailer Tesco, the largest solar corporate PPA uted in the UK to date.

Oil and gas company Shell has signed a ten-year route to market agreement to manage the remaining 35% of the development’s solar generation, which was secured by Quinbrook under a 15-year Contract for Difference (CfD) in July 2022.

Both offtake agreements provide long-term index-linked revenues for Cleve Hill, hedging against inflation and offering revenue certainty for investors. The deals are, according to Quinbrook managing director and UK regional lead Keith Gains, “testament to this landmark renewables project”.

Up to 10% of Tesco’s UK electricity demand will be met through the PPA, a “significant step” in the retailer’s journey to carbon neutrality by 2035, said Ken Murphy, group chief utive of Tesco.

He added: “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.”

Sharing that sentiment, head of power and systematic trading for Shell Energy Europe Rupen Tanna, said: “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.”

The storage element of the project is particularly of note after an unsuccessful attempt by the local planning committee for Swale Borough Council to refuse consent for the addition of the battery energy storage system (BESS).

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