Quinbrook Infrastructure Partners, an investment manager specializing in energy transition infrastructure, announced two long-term offtake agreements with Tesco and Shell.
These agreements cover the entire solar power generation from Quinbrook’s Cleve Hill Solar Park, the largest solar and battery storage project in the UK, which will begin operations in early 2025.
Located in Kent, the Cleve Hill Solar Park will produce 373MW of solar energy alongside 150MW of battery storage.
The project is anticipated to produce enough electricity to power over 102,000 homes annually and offset more than 142,000 tons of carbon emissions in its first year, equivalent to the carbon sequestration of over 2.3 million tree seedlings grown over a decade.
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Keith Gains, Managing Director and UK regional lead at Quinbrook said, “The offtake agreements secured with Tesco and Shell are a testament to this landmark renewables project for the UK and represent a significant milestone in delivering long-term inflation-linked revenues for our investors, supporting new construction and jobs.”
He added, “Cleve Hill has set new benchmarks for UK solar and helps Quinbrook further its efforts to support the UK’s decarbonisation goals and energy independence through large-scale solar + battery storage projects.”
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Tesco signed a 15-year Power Purchase Agreement (PPA) with Quinbrook, marking the UK’s most prominent corporate solar PPA.
The deal will secure 65% of Cleve Hill’s solar generation, contributing up to 10% of Tesco’s electricity demand in the UK.
Shell, an oil and gas company, has entered a 10-year Route to Market agreement with Quinbrook, covering 35% of Cleve Hill’s solar output.
This deal builds on Quinbrook’s success in securing a 15-year Contract for Difference (CfD) in 2022, awarded during the UK’s largest renewable energy auction.
Cleve Hill received development approval from the UK government in 2020 and was the first solar project approved as a Nationally Significant Infrastructure Project.
Beyond its environmental impact, the project is estimated to generate £143 million in local economic benefits and support more than 2,300 jobs over its lifetime.
