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.
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.
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.”
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.
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.”
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