Pennon acquires solar sites

Pennon Group, the parent of South West, Bristol and Bournemouth water companies, has purchased an energy portfolio from Elgin Energy.

In a deal worth £85 million, the company has acquired three solar photovoltaic sites in Buckinghamshire, Aberdeenshire and Cumbria.

The sites will generate more than 95GWh of energy as part of Pennon’s commitment to reach net zero, which it shares with the wider water sector in England and Wales.

Susan Davy, chief executive of Pennon, said the acquisition was an important step in Pennon’s growth strategy and in boosting the renewables pillar of its net zero plans.

“In addition,” Davy said, “it will bolster Pennon’s energy security and resilience by reducing exposure to future volatility in wholesale power markets.”

The sites will be part of subsidiary company Pennon Power Limited and are anticipated to commence generation in 2025.

Elgin Energy, an independent solar and storage developer, has a pipeline of 14GW of projects in the UK, Ireland and Australia working with landowners, local authorities and stakeholders to add renewable energy schemes.

The investment will include expected build costs for the three projects.

The company has plans to spend £160 million on renewable generation over the year. Last month, Pennon said it had secured a site in Dunfermline to generate 40GWh of renewable energy through the subsidiary. Davy said the company’s ambition was for a power portfolio of 190GWh with energy storage capacity of 60MW.

Added to the recently acquired Dunfermline project and existing internal generation, these projects when up and running will bring the company’s self-generation capacity to around 40% of its total electricity usage. It has a 50% target.