EDF Energy will receive 104MW of renewable energy from existing solar farms in the UK.
The London-based power firm has signed a 15-year power purchase agreements (PPA) with the owner of the solar projects, Primrose Solar, according to which the firm will buy energy at an inflation-linked guaranteed minimum price.
The deal between the companies is in line with Primrose Solar’s intention to raise capital against the solar projects.
Gus Wood of Wragge Lawrence Graham & Co had been the advisor for Primrose during the deal.
EDF Energy director of business services John Cockin said: "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."
Primrose Solar presently has ten UK solar projects with a combined installation capacity of 184MW. Presently, 28MW of the projects is under stages of development, with 156MW operational.
Primrose’s portfolio includes 41MW project at Canworthy Water in Cornwall and another 48MW Southwick Estate solar farm near Fareham in Hampshire, which are two of the largest solar developments in the UK.
Image: EDF to receive 104MW of solar power from Primrose Solar facilities in UK. Photo: courtesy of EDF Energy.