ENGIE & DIF sign ‘first’ UK solar-storage PPA

July 12, 2023

In what has been described as the UK’s “first solar-plus-storage off-take agreement”, ENGIE has signed a 10-year hybrid power purchase agreement (PPA) with DIF Capital Partners and ib vogt for a co-located 55MW solar and a 40MW / 80 MWh battery storage system in Leighton Buzzard in Bedfordshire in the UK.

As part of the deal, Engie has also signed a 10-year battery energy storage optimisation contract with Arenko Group.

DIF Capital Partners, the seller within the agreement, worked with Pexapark’s PPA transaction team to analyse expected revenues and risk exposure. 

“The market-first hybrid PPA will also provide secure and bankable revenue streams for both the solar farm and storage system,” a Pexapark statement said. “This new agreement comes off the back of massive growth in interest in the co-location of solar and storage projects in the UK, as solar investors turn to batteries to maximise the value and flexibility of their assets in the post-subsidy market – 45 per cent  of all solar planning permissions submitted in the UK in the past two years have been for hybrid systems encompassing storage.”

Brian Knowles, director of storage & flexibility at Pexapark, said:”The innovative nature of this agreement reflects our commitment to finding new PPA solutions for unsubsidised renewable energy developers and off-takers, with contracted revenues that offer attractive returns and low risk profiles for investors.”