Schroders Greencoat funds have partnered with Innova Renewables to finance and develop 5MW of solar energy and storage projects across the UK.
The partnership has set up the ISG Renewables platform to construct the projects over the next three to five years.
Schroders Greencoat will provide access to long-term capital and contribute expertise in portfolio management, operational management and long-term asset optimisation. Innova will bring to the joint venture their construction and development project portfolio, and in-house expertise in the development of sites, construction and operational management, the companies said.
ISG Renewables has acquired Carn Nicholas Solar Park in Swansea, Wales, developed and constructed by Innova as its first asset. The 10MWp solar farm was completed earlier this year and is now operational.
ISG Renewables will target a proportion of contracted revenues through contract for difference, private wires and corporate power purchase agreements, with a further two sites to be acquired which are expected to soon become operational and a further three in design and procurement in 2023. ISG Renewables also expects to acquire third-party-developed projects across the development lifecycle.
Lee Moscovitch, Schroders Greencoat partner, said the Carn Nicholas asset “brings further long-term inflation-protected cashflows to our investor base, building on our existing 1.1GW portfolio of UK solar assets”.
“Looking to the future, ISG Renewables is well placed to contribute to the UK’s leadership position within the global energy transition, and to help meet society’s need for clean, affordable and reliable power.”
Robin Dummett, director at Innova Renewables, said: “Having commenced our construction programme last year, we are delighted that our first project is now operational, with further sites expected to become operational throughout 2023 and we look forward to working with Schroders Greencoat to deliver against our shared ambitions.”
To read the latest edition of IPE Real Assets magazine click here.