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EDF Energy and Primrose Solar have signed a 15-year power purchase agreement (PPA) for existing solar farms with a combined capacity of 104 MW.
The utility will pay an inflation-linked guaranteed minimum price for power, which Primrose Solar says will help its ability to raise capital and improve project returns.
EDF Energy director of business services John Cockin said: “The risk that lenders attach to the volatile nature of wholesale power prices can limit a renewable developer’s ability to raise capital for expansion.
“By guaranteeing some of Primrose Solar’s income with a floor price, we’re able to remove a significant portion of that risk for them. It also demonstrates EDF Energy’s commitment to supporting the growth of independent renewable energy generators.”
Primrose Solar currently has 10 solar farms with 184 MW joint capacity. Of these, 156 MW are operational and 28 MW are under construction.
The company boasts two of the UK’s largest solar farms – a 41 MW site in Cornwall and the 48 MW Southwick Estate solar farm in Hampshire.
In October last year, the company agreed a £29 million finance package with investment manager M&G Investments to finance four UK solar farms.
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