Tesco and Shell’s Pact Fuels UK’s Largest Solar Project at Cleve Hill

The Cleve Hill Solar Park is poised to redefine the renewable energy landscape in the UK, thanks to groundbreaking offtake agreements between Tesco Stores and Shell Energy Europe. This ambitious project, which boasts a capacity of 373 megawatts of solar energy coupled with 150 megawatts of battery storage, is set to kick off operations in early 2025. When fully operational, it will generate enough energy to power over 102,000 homes, marking a significant leap in the nation’s efforts to shift toward sustainable energy sources.

Quinbrook Infrastructure Partners, the brains behind this monumental project, has secured long-term agreements with Tesco and Shell that will guarantee 100% of the solar power generated at Cleve Hill. Tesco’s 15-year Power Purchase Agreement (PPA) is particularly noteworthy as it stands as the largest corporate PPA for solar energy in the UK to date. This commitment not only underscores Tesco’s ambition to achieve carbon neutrality across its operations by 2035 but also highlights the growing trend of major corporations stepping up to take responsibility for their energy consumption.

The significance of these agreements extends beyond the immediate benefits for Tesco and Shell. They represent a crucial milestone for Quinbrook, providing long-term, inflation-linked revenues that support the construction of new infrastructure and job creation. Keith Gains, Managing Director of Quinbrook, emphasized the importance of these agreements in driving forward the UK’s decarbonization goals and energy independence. The Cleve Hill project is not just another solar farm; it’s a benchmark for future solar and battery storage projects in the UK.

Shell, not to be outdone, has signed a ten-year Route to Market agreement with Quinbrook, allowing it to manage a substantial portion of the capacity secured under a 15-year Contract for Difference awarded in July 2022. This collaboration further cements Shell’s role in the UK’s renewable energy sector, emphasizing the importance of combined solar and battery storage projects in achieving a flexible and low-carbon energy future.

Moreover, Cleve Hill is set to have a substantial environmental impact. It is projected to reduce carbon emissions by more than 142,000 tonnes in its first year alone—equivalent to the carbon sequestered by over 2.3 million tree seedlings grown for a decade. The project also aims for a net gain of over 65% in biodiversity on-site, addressing ecological concerns while advancing renewable energy goals.

The socio-economic benefits of Cleve Hill are equally compelling. The project is expected to create over 2,300 direct and indirect jobs and generate more than £143 million in local economic benefits throughout its operational life. This is a clear indication that the renewable energy sector can be a powerful engine for local economies, providing jobs while also addressing climate change.

As the UK continues to navigate its energy transition, the Cleve Hill Solar Park stands as a shining example of what can be accomplished when major players in the corporate world align their strategies with national sustainability goals. With Tesco and Shell taking the lead, the future of energy in the UK looks not only greener but also more resilient, setting a precedent for other companies to follow suit. The ripple effects of these agreements could very well inspire similar initiatives across various sectors, pushing the envelope further in the quest for a sustainable energy landscape.

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