DIF Capital Partners Acquires 720 MW Solar and Battery Portfolio in the UK
The first two projects have already begun construction
DIF Capital Partners (DIF), an independent infrastructure investment fund manager, and ib vogt, a utility-scale PV solar developer, has acquired 100% interest in a greenfield portfolio of ready-to-build co-located solar and battery projects from Enso Green Holding Limited (EGHL).
Developed by EGHL — a joint venture between Cero Generation and Enso Energy — the UK-based portfolio consists of seven sites. It is the largest co-location project of solar and (battery) storage in the UK.
The facility has a total capacity of 720 MW, of which 380 MW is earmarked for solar and 340 MW for battery storage.
DIF’s current investment has been made through its DIF Infrastructure VII fund, which will acquire a 90% interest in the portfolio.
In October 2021, DIF Infrastructure VI fund had reached an agreement to acquire a 51% stake in ib vogt, from its current 100% shareholder (DVV).
For the current project, solar engineering, procurement, construction, and operations and maintenance services will be provided by ib vogt.
The acquisition of each project will be completed once each site reaches the ready-to-build stage.
The first two projects have already been acquired and have started construction. All projects are expected to be acquired by mid-2023 and operational between 2024 and 2026.
All individual sites are expected to benefit from Contract for Difference arrangement or power purchase agreements with corporate or utility offtakers.
Gijs Voskuyl, partner and Head of Infrastructure at DIF Capital Partners, said, “This transaction 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 significantly contribute 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-carbonization 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 5 GW, and a further 5 GW of early-stage opportunities.”
DIF and ib vogt are in the process of raising a non-recourse debt financing facility to fund the construction of the portfolio.
Ib vogt was among the four bidders who won Gujarat Urja Vikas Nigam’s recent auction to supply power from 500 MW of grid-connected solar power projects (Tranche XVIII) with a greenshoe option of an additional 500 MW.