DIF Capital Partners, together with Ib Vogt, has signed the acquisition of a 100% interest in a 720MW portfolio of ready-to-build co-located solar and battery projects in the UK.
DIF and Ib Vogt have acquired the portfolio from Enso Green Holdings Limited (EGHL), a joint venture between Cero Generation and Enso Energy.
DIF’s investment is being done through its DIF Infrastructure VII fund, which will acquire a 90% interest.
The UK-based portfolio, developed by EGHL, consists of seven sites with a total capacity of 720MW (380MW of solar and 340MW of battery storage).
Ib Vogt will supply Solar EPC and O&M services to the portfolio.
The acquisition of each project will be completed once a site reaches the ready-to-build stage.
The first two projects have already been acquired and have started construction; the expectation is that all sites are acquired by mid-2023 and that they are operational between 2024 and 2026.
All individual developments are expected to benefit from CfD contracts or power purchase agreements with corporate or utility offtakers.
DIF and Ib Vogt are in the process of raising a non-recourse debt financing facility to fund the construction of the portfolio.
Gijs Voskuyl, partner and Head of Infrastructure at DIF Capital Partners, said: “This transaction perfectly fits in DIF’s build to core strategy and will make a significant contribution to the UK’s efforts to achieve net zero by 2050.
“It represents DIF’s first direct investment into the asset class of utility scale energy storage, which is an essential component of future electricity markets.”
Marta Martínez Queimadelos, CEO of Cero Generation, said: “This portfolio will make a significant contribution to the UK’s efforts to achieve net zero by 2050, with the co-location of solar and battery storage playing a key role in the de-carbonisation of the grid.
“We will continue to develop and deliver the UK solar and battery projects in the joint venture’s existing pipeline, which extends to 5GW, and a further 5GW of early-stage opportunities.”