Solar companies Conergy and Camborne Energy have announced the sale of a planned 40MW solar farm portfolio to investor Primrose Solar.
The deal will see Primrose Solar, which is backed by global investment management firm York Capital Management and London-based private equity form Pioneer Point Partners LLP, purchase the 40MW solar farm portfolio, which includes sites in Dorset, Norfolk and Cardiff.
In addition, the sale includes options on four other solar farms across the UK totalling 50MW of capacity that are currently at the planning stage.
Commenting on the sale, Robert Goss, MD Conergy UK, said: "As solar scales up to become a significant player in the UK energy mix, new types of investors are entering the market looking for bankable products. Conergy's partnership with Camborne has delivered a portfolio of plant in the right locations with predictable long-term returns thanks to high quality design and build. This approach is ideal for long-term investors and should attract more capital to the growing utility-scale segment."
The deal marks the first sale of a solar development under the newly-formed partnership between Conergy and Camborne Energy. Under the terms of the agreement Conergy, which was recently acquired by Florida’s Kawa Capital Management, will build, manage and operate the solar farms.
All five solar farms sold under the agreement have been granted planning permission. The largest site, a 15MW solar farm, will be located at Nova Scotia Farm near Great Yarmouth with a 7MW solar farm being developed close to Cardiff. The remaining sites will be 3MW, 6MW and 9MW developments on various fields owned by the same Dorset landowner.
Construction of all four solar farms is expected to be completed by the end of March 2014, in time to beat the upcoming drop in support under the Renewable Obligation (RO) from 1.6ROCs/MWh to 1.4ROCs/MWh on 1 April, 2014.