DIF Capital Partners and solar developer Ib Vogt have partnered to buy a 720MW portfolio of co-located solar and battery projects in the UK from a Cero Generation and Enso Energy joint venture.
DIF is investing an undisclosed sum on behalf of the DIF Infrastructure VII fund to buy a 90% interest in the greenfield portfolio of ready-to-build projects on seven sites from Enso Green Holdings Limited (EGHL). Ib Vogt will provide solar EPC and O&M services.
The portfolio, developed by EGHL, comprises 380MW of solar and 340MW of battery storage and is believed to be UK’s largest co-location portfolio.
DIF said the acquisition of each project will be completed once each site reaches the ready-to-build stage. The first two projects have already been acquired and have started construction.
DIF and Ib Vogt are currently in the process of raising a non-recourse debt financing facility to fund the construction of the portfolio.
Gijs Voskuyl, partner and head of infrastructure at DIF Capital Partners, said: “This transaction perfectly fits in DIF’s build-to-core strategy and will make a significant contribution to the UK’s efforts to achieve net zero by 2050.
”It represents DIF’s first direct investment into the asset class of utility-scale energy storage, which is an essential component of future electricity markets.”
Marta Martínez Queimadelos, CEO of Cero Generation, said: “This portfolio will make a significant contribution to the UK’s efforts to achieve net zero by 2050, with the co-location of solar and battery storage playing a key role in the de-carbonisation of the grid.
”We will continue to develop and deliver the UK solar and battery projects in the joint venture’s existing pipeline, which extends to 5GW, and a further 5GW of early-stage opportunities.”
Andrew King, managing director of Enso, said: “This transaction provides further evidence that co-located solar and battery storage projects connecting directly to the transmission network are attractive to funders and investors and will play an important role in the delivery of the UK’s net zero plans.”
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