Solar and storage developer Elgin Energy has acquired a large solar and storage portfolio from a fund managed by Foresight Group.
The 318MW portfolio is comprised of six sites spread across the UK at various stages of development. Of the newly acquired projects, four of them – with a combined capacity of 164MW – secured contracts in the most recent Contracts for Difference (CfD) Allocation Round 6 (AR6), which took place in autumn 2024. Elgin states that it expects construction to begin on several of the projects in the first half of this year.
This is not the first time Elgin Energy and Foresight Group have worked together. The two companies have had a business relationship for almost five years, having formed a joint venture in September 2020 with the aim of developing 200MW of new solar PV capacity across England, Wales, and Scotland.
Elgin has not yet responded to a request for comment, but Ronan Kilduff, CEO of Elgin, has reportedly told other news outlets: “Acquiring this portfolio marks a defining moment for Elgin as we solidify our position as an independent power producer (IPP). These projects represent our commitment to delivering tangible, high-quality renewable energy solutions that align with the UK’s net-zero ambitions. We look forward to seeing these projects come to fruition and playing a key role in the nation’s energy transition.”
Additionally, Anouska Morjaria, associate investment director at Foresight, added: “We are delighted to have completed the sale of this portfolio of solar and storage projects to Elgin, having co-developed the projects since 2020. The realisation of this investment underscores our commitment to building sustainable energy solutions.”
Elgin rises again
This is the first major asset purchase that Elgin has taken part in since receiving a significant investment boost last spring. In April 2024, investment firm Copenhagen Infrastructure Partners (CIP) acquired a majority stake in Elgin Energy for £250 million, with the intention of helping Elgin Energy to deliver a 15GW project portfolio.
In previous years, Elgin Energy appeared to be retreating from the UK solar market, having sold significant portions of its portfolio between early 2021 and February 2024. In January 2021, Elgin Energy announced it had completed what was at the time the largest solar portfolio sale in the UK, selling a 519MW solar PV portfolio and a 70MW battery energy storage system (BESS) project to ScottishPower Renewables, which international utility Iberdrola owns. Elgin sold a further 100MW solar portfolio to Pennon Power, a subsidiary of British water utility Pennon Group, in 2023 and sold a 16-project Irish portfolio totalling 191MW of capacity to investment group Allianz Capital Partners in February 2024.
In more recent months, Elgin has stated its intention to transition into an IPP. In June 2024, the firm secured a £60 million revolving credit facility from Banco Bilbao Vizcaya Argentaria (BBVA) in order to support this mission, which the firm said would be used to grow its team and pipeline in new and existing markets, as well as supporting its 15GW development portfolio.
The following month, Elgin secured a development rights deal with Severn Trent Green Power to construct three large-scale solar PV power plants in Leicestershire, Warwickshire and North Yorkshire. The three projects are classified as “ready to build”, with grid contracts, planning consent and land leases secured.
