June 13, 2024

New PPA Sealed for 27 MW Twitch Hill Solar Park

Lynher Energy has secured a new PPA for its 27 MW solar plant with an FTSE 100 company, providing a foundation for near-term solar capacity growth. This sleeved physical PPA will supply reliable solar power to the off-taker over the contract period.

15-year Power Purchase Agreement

Lynher Energy has secured a 15-year Power Purchase Agreement (PPA) for its 27 MW solar plant located on UK agricultural land. The Corporate PPA, structured as a sleeved physical agreement, will ensure a consistent supply of solar power to the off-taker throughout the duration of the contract. According to Lynher Energy's director, this agreement with an FTSE 100 company establishes a solid foundation for the company's short-term growth in solar capacity.

Ethical Power, experts in solar energy, have secured the contract to handle engineering, procurement, construction, as well as operation and maintenance for the Twitch Hill solar array.

In this arrangement, all electricity generated by the new 27 MW Twitch Hill Solar Park will be exclusively supplied to a UK-based FTSE 100 company. This contract operates under a sleeved physical PPA format, involving an intermediary energy supplier or utility between the solar plant and the recipient. Construction is underway at Twitch Hill, slated for completion by September 2024.

Reducing Emissions by 8,150 tonnes of CO2

The Twitch Hill Solar Park, spanning 36 hectares in Shropshire on unused grade 3b agricultural land, incorporates habitat creation, rewilding efforts, and provisions for sheep grazing. Once operational, it is expected to annually reduce power generation emissions by 8,150 tonnes of CO2.

The site, classified under the Agricultural Land Classification system used in England and Wales, has seen development efforts including planting nearly 3.5 km of new hedgerows and implementing environmental enhancements such as introducing wildflowers and strategically planting trees to support biodiversity.

Cheswell Grange Farm, the previous owner and landlord of the solar farm, initiated development efforts at the location in 2020 in collaboration with chartered surveying and engineering consultancy Low Carbon Alliance. Lynher Energy acquired the project on March 31, 2023. In August 2023, the developer secured a GBP 52.7 million ($67 million) bank facility from Close Brothers to support the construction of multiple projects, including Twitch Hill.

The CPPA signifies a significant achievement for Lynher Energy's ongoing efforts to enhance the development and delivery of sustainable energy. According to Chris Sparrow, Director of Lynher Energy, this agreement marks progress towards their goals in renewable energy. It establishes a strong basis for expanding their capacity in the foreseeable future.

Combating Climate Change

Collaborating with a reputable FTSE100 company underscores their commitment to combating climate change and delivering value to stakeholders. Moreover, the agreement is structured to ensure stable cash flows from this investment over the long term.

Lynher Energy's Director, Chris Sparrow, remarked, "This CPPA is another step towards realising our aim in the renewable energy area. The arrangement lays 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 important contributions to the battle against climate change while also adding value to our stakeholders. The arrangement is also intended to give a high level of confidence about cash flows from this investment for many years to come.”

Lynher Energy's securing of a new 15-year Power Purchase Agreement (PPA) for its 27 MW Twitch Hill Solar Park marks a pivotal step forward in its commitment to sustainable energy development. Partnering with an FTSE 100 company not only solidifies their position in the renewable energy sector but also underscores their dedication to environmental stewardship and stakeholder value.

With construction underway and the project expected to come online by September 2024, Twitch Hill represents not just an expansion in solar capacity but also a model for integrating renewable energy with biodiversity conservation on grade 3b agricultural land. As Lynher Energy continues to advance, this agreement ensures stability and growth, driving meaningful contributions to mitigating climate change for years to come.

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