Tesco pens PPA deal for 5MW of rooftop solar

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Altered Energy – Alternative Energy news

Published: 20 Jun 2019, 09:39

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Tesco is to install around 5MW of rooftop solar PV across its UK site portfolio after penning a PPA agreement. 

The supermarket giant has signed an agreement with SDCL Energy Efficiency Income Trust (SEEIT), which will provide financing for the sites.

It’s the second major solar announcement from Tesco this year. In January Solar Power Portal revealed that Tesco had turned to PV developer Push Energy and financier Macquarie to plot a major solar rollout programme that took in at least five sites across the UK.

Under the SEEIT deal, an initial tranche of 1MW is intended to be the first phase of around 5MW of rooftop solar, all of which fall under the framework agreement. 

The deal will see Tesco enter into power purchase agreements with SEEIT for each individual site, and SEEIT will be responsible for the installation, operation and maintenance of each project. 

Kingspan Energy is to provide a complete design, build, finance, operation and maintenance solution for the supermarket as both the EPC and O&M contractor for the installations. 

SEEIT said the deal complied with its investment thesis by bringing competitively priced clean energy to the point of use.

Jonathan Maxwell, chief executive at SDCL, said that the deal was evidence of the firm continuing to deliver on the pipeline it identified at the time of its initial public offering.

“With all the revenues being generated from the PPAs and costs being largely fixed, this is a positive, stable investment for SEEIT and one we are delighted to add to our growing portfolio,” he said. 

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Altered Energy – Alternative Energy news