Lynher Energy has secured a new PPA with an FTSE 100 company for its 27 MW solar plant, establishing a foundation for near-term solar capacity growth. This sleeved physical agreement will supply the off-taker with reliable solar power throughout the contract period.
15-year Power Purchase Agreement
The 15-year Power Purchase Agreement (PPA) is for Lynher Energy’s 27 MW solar plant on UK agricultural land. Structured as a sleeved physical agreement, the PPA will ensure a consistent supply of solar power to the off-taker for the duration of the contract. According to a director at Lynher Energy, the deal establishes a solid foundation for the company’s short-term growth in solar capacity.
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Solar energy specialist Ethical Power has secured the contract to handle engineering, procurement, and construction, as well as operations and maintenance for the Twitch Hill solar array.
Under the arrangement, all electricity generated by the new 27 MW Twitch Hill Solar Park will be supplied exclusively to a UK-based FTSE 100 company. This contract uses a sleeved physical PPA format, which involves an intermediary energy supplier between the solar plant and the recipient. Construction at Twitch Hill is underway, with completion slated for September 2024.
Reducing Emissions by 8,150 tonnes of CO2
Spanning 36 hectares of unused grade 3b agricultural land in Shropshire, the Twitch Hill Solar Park will also incorporate habitat creation, rewilding efforts, and provisions for sheep grazing. Once operational, it is expected to reduce annual power generation emissions by 8,150 tonnes of CO2.
Development on the site, which is classified under the Agricultural Land Classification system for England and Wales, has included planting nearly 3.5 km of new hedgerows. Further environmental enhancements involve introducing wildflowers and strategically planting trees to support biodiversity.
Cheswell Grange Farm, the site’s previous owner and landlord, began developing the project in 2020 in collaboration with the chartered surveying and engineering consultancy Low Carbon Alliance. Lynher Energy acquired the project on March 31, 2023. In August 2023, the developer secured a £52.7 million ($67 million) bank facility from Close Brothers to support the construction of multiple projects, including Twitch Hill.
Combating Climate Change
Lynher Energy’s Director, Chris Sparrow, remarked, “This CPPA is another step towards realising our aim in the renewable energy sector. The arrangement provides a solid framework for Lynher Energy to continue expanding its capacity in the near future. Working with a creditworthy FTSE100 company confirms our ability to make meaningful contributions to the fight against climate change while also adding value for our stakeholders. The agreement is also intended to provide strong confidence in the cash flows from this investment for many years to come.”
The new 15-year PPA for the 27 MW Twitch Hill Solar Park marks a pivotal step in Lynher Energy’s commitment to sustainable energy development. Partnering with an FTSE 100 company solidifies its position in the renewable energy sector and underscores its dedication to environmental stewardship.
With construction underway for a September 2024 completion, Twitch Hill serves as a model for integrating renewable energy with biodiversity conservation. This agreement ensures stability and growth, driving meaningful contributions toward mitigating climate change for years to come.