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Commercial electricity supplier SmartestEnergy has signed Power Purchase Agreement (PPA) worth £70 million.

The 15 year deal Between SmartestEnergy and Low Carbon, an investment company with a focus on renewable energy production, is for up to 65MW.

An initial 23MW of capacity under the PPA will be provided by four ground-based solar projects in Dorset, Devon and the Isle of Wight.

John Cole, chief investment officer of Low Carbon, said the agreement provides a foundation for further significant investment in UK renewable generation.

Iain Robertson, generation sales manager for SmartestEnergy, said: “Banks are looking for greater security and the fact that we are able to provide such long term deals on both the power generated and the renewable obligation certificate payments is helping projects secure the finance they need to proceed.”