Aura Power Developments and Verdant Energy have combined to form a new independent power producer (IPP) focused on solar and battery energy storage systems (BESS) in the UK.
The merged business will be led by Aura Power’s founder and CEO, Simon Coulson, who continues as a minority shareholder.
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The new entity combines Verdant Energy’s operating and under-construction portfolio with Aura Power’s contracted projects.
The enlarged platform comprises approximately 1GW of operating and under-construction solar and battery storage assets in the UK, in addition to a development pipeline of around 10GW.
Aura Power’s battery energy storage project development will also continue selectively in Europe.
As part of the merger, CVC DIF has supported the transaction by securing financing from Eiffel Investment Group.
CVC DIF has made its investment in the business through DIF Infrastructure VII.
This financing will be used to facilitate the merger, refinance existing junior facilities and fund the growth of the combined pipeline.
Aura Power, established in 2013, has advanced more than 2.1GW of solar and battery storage projects to ready-to-build or commercialised stages in the UK and internationally.
Its recent transition to an IPP model is marked by reaching financial close on six UK solar projects and the recent energisation of the Kemble site.
Coulson said: “This merger with Verdant Energy, with the backing of CVC DIF, marks a transformative milestone for Aura Power.
“By combining our extensive development pipeline with Verdant’s robust delivery track record, we are perfectly positioned to scale our IPP model.
“The deal provides us with both the financial strength and operational expertise to accelerate the delivery of critical solar and battery storage infrastructure, helping the UK meet its ambitious green energy targets.”
Verdant Energy, launched in 2022, has assembled a portfolio of around 660MW of utility-scale solar and co-located battery storage assets in operation or under construction.
Leadership of the merged company will draw from both previous organisations, employing more than 75 people.
Akereos Capital served as financial and debt adviser, CMS as legal adviser, TLT as real estate adviser and DNV as technical adviser, while PricewaterhouseCoopers advised on financial, tax and structuring matters to CVC DIF.
Burges Salmon acted as legal adviser to Aura Power.
