Fast-growing Octopus Group’s clean energy subsidiary has sealed a development deal aimed at building out its £10 million pipeline of solar PV projects.
Zestec Asset Management will devote funds of up to £100 million to the partnership, with Octopus Renewables as its counterparty.
First recipients of the cash will be ground-mounted private wire initiatives and commercial roofs. Further projects are contemplated.
Access to Zestec’s funds will enable the parties to increase the durations of the power purchase agreements (PPAs) they offer to clients, up to a maximum of 25 years.
Extending the range of customers able to acquire what Octopus Renewables’ investment director called “impactful renewable energy assets” is a major motivator for the tie-up.
Peter Dias added: “With Zestec, we are building a partnership whose joint capabilities and experience brings a strong professional combination, enabling clients in the UK commercial, industrial and public sectors to confidently partner with a team that has completely aligned interests.”
Zestec Renewable Energy’s COO Simon Booth said both companies shared an awareness of the opportunities offered by renewable energy, as well as a common “..approach to working with clients to build the highest quality generating assets”.
Integrated retailer Octopus Energy took full control of the renewables subsidiary two months ago, creating a combined 2.8GW base of generating assets. Included in that total are just under 1.3GW of large-scale PV projects, and a further total of 29MW of solar on commercial roofs. In all, 300 developments make up the developer’s asset base.