July 13, 2023: Software and advisory firm Pexapark said on July 5 it is supporting a milestone hybrid power purchase agreement (PPA) and optimization agreement that will boost the solar-storage market in the UK.
The deal, announced by equity fund DIF Capital Partners, covers a 55MW solar farm with a 40MW/80MWh battery storage system in Leighton Buzzard and is the UK’s first bankable and unsubsidized co-located hybrid PPA, according to Pexapark.
The move will provide secured revenue across the solar-BESS system over a 10-year term.
In the UK, 45% of all planning applications for solar projects submitted in the past two years have been for hybrid systems that include battery storage, Pexapark said.
And the company said its own analysis indicates that 64% of renewable energy businesses in the wider European market are now seeking to introduce or increase the proportion of energy storage in their portfolios.
However, Pexapark said PPAs for co-located projects have remained difficult to agree on because of their complex operational usage profiles and contracting structures, which has limited options available for financing solar-hybrid schemes.
Brian Knowles, director of storage and flexibility at Pexapark, said the innovative nature of the UK agreement “reflects our commitment to finding new PPA solutions for unsubsidized renewable energy developers and offtakers, with contracted revenue that offers attractive returns and low risk profiles for investors”.