In a significant move that underscores the growing momentum in the renewable energy sector, Schroders Greencoat has acquired a 29MW solar farm in southern England, marking a pivotal step in their ongoing partnership with Innova. The Stokeford array, boasting a capacity of 28.5MW, is strategically located near Wareham, Dorset. This acquisition not only adds to the portfolio of Schroders Greencoat but also highlights the increasing collaboration between private investment firms and renewable energy developers.
The Stokeford Solar Farm, developed by Innova in conjunction with landowner Will Bond, is notable for its shared grid connection with the 8MW Alaska wind farm. This unique setup is one of the few utility-scale solar-wind grid connections in England, showcasing an innovative approach to maximizing renewable energy output. Such shared connections are not just a technical feat; they represent a shift towards more integrated energy solutions that can enhance grid resilience and efficiency.
The deal was facilitated by a UK flagship private markets fund managed by Schroders Greencoat, which has been actively seeking opportunities to bolster its renewable energy investments. The site was awarded a Contract for Difference (CfD) in July 2022, reflecting the UK government’s commitment to incentivizing renewable energy projects as part of its broader energy strategy. With the site energizing on July 31, 2024, this acquisition is poised to contribute significantly to the UK’s renewable energy landscape.
Innova’s senior investment manager, Hassan Bashir, expressed enthusiasm about the divestment, stating, “We are delighted to announce the divestment of our fourth project from our DNO pipeline to a Schroders Greencoat managed fund.” This sentiment underscores the collaborative spirit between the two firms and their shared commitment to advancing the UK’s Net Zero target. Bashir also acknowledged the crucial role played by project partners and legal advisers, emphasizing the complexities involved in such transactions.
For Schroders Greencoat, this acquisition is part of a broader strategy to meet the UK’s demand for clean, affordable energy. Investment director Matt Tingle remarked, “This acquisition is the latest in our partnership with Innova, which has now seen four projects transacted.” This ongoing collaboration is essential for achieving the government’s ambitious target of 70GW of solar capacity by 2035.
The deal is not just a win for the companies involved; it signals a robust trend in the renewable energy sector where public and private partnerships are becoming increasingly vital. As the UK navigates its energy transition, such collaborations will likely become more common, paving the way for innovative solutions that blend different renewable technologies. The successful integration of solar and wind at a utility scale could serve as a blueprint for future projects, demonstrating the potential for optimized energy generation and reduced reliance on fossil fuels.
As the renewable energy landscape evolves, this acquisition could set the stage for further developments in the sector, pushing the envelope on what’s possible in terms of energy efficiency, sustainability, and investment returns. The Stokeford Solar Farm is more than just a project; it’s a stepping stone toward a cleaner, greener future.
