Lynher Energy has signed a 15-year corporate power purchase agreement (CPPA) for its 27 MW Twitch Hill Solar Park site in Shropshire, England. Under the agreement, 100% of the site’s output will be supplied to an unnamed UK-based FTSE 100 company. The deal is structured as a sleeved physical PPA, meaning an energy supplier or utility will act as an intermediary between the solar plant and offtaker.
Construction has already begun at the 36-hectare site and commissioning is currently forecast for September 2024. The solar farm’s previous owner and landlord Cheswell Grange farm began development work at the site in 2020, working with chartered surveying and engineering consultancy Low Carbon Alliance. The project was sold to Lynher Energy on March 31, 2023. In August 2023, the developer secured a GBP 52.7 million ($67 million) bank facility with Close Brothers to help finance construction of several projects, including Twitch Hill.
Twitch Hill Solar Park is located on unused farmland rated as 3b: Moderate Quality Agricultural Land, under the Agricultural Land Classification system used in England and Wales. As part of the project’s development, nearly 3.5 km of new hedgerow has been planted at the site. Other environmental proposals include introducing wildflowers and strategic tree planting as a means of supporting biodiversity at the site.
Established in December 2022, Lynher Energy is a joint venture between solar and storage project developer Ethical Power and investors Napier Park Global Capital. According to director Chirs Sparrow, the CPPA provides a solid foundation for Lynher Energy to grow capacity “in the near future.”
“Working with a creditworthy FTSE 100 company reaffirms our ability to make meaningful contributions to the fight against climate change while providing value for our stakeholders. The agreement also is designed to provide a high level of certainty of cashflows on this investment for years to come,” he said.
Ethical Power will be responsible for operation and maintenance work at Twitch Hill . Lynher Energy was advised by Osborne Clarke and the offtaker was advised by Amber and EY.
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