Conergy secures 200 MW solar project rights in UK, $60 million bank guarantee

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Downstream solar company Conergy Group will soon add close to 200 MW of U.K. solar PV capacity to its portfolio, having begun work on a 21 MW PV plant in England and acquired a further 166 MW of projects from Lumicity.

Located in the outlying suburbs of Bristol, the largest city in England’s Southwest, the 21 MW solar PV park will be connected to the grid in November, delivering enough clean solar energy to power 3,750 local households annually over the course of its 25-year lifetime.

The project has been set up via a revenue share with a local community, and is expected to generate revenues in excess of $750,000 for local causes. Once complete, Conergy will have installed 126 MW of solar PV in the U.K., which has become an increasingly important market for the company. In fact, Conergy is now in the top-five engineering, procurement and construction (EPC) companies operating in the U.K.

In preparation for continued expansion into a market expected to add 1.5 GW of PV capacity between now and the end of the year, Conergy Group’s British subsidiary Wirsol Solar UK has acquired the project rights to 166 MW of solar capacity from U.K. renewable energy developer Lumicity. The total potential build value of these project rights is approximately $340 million.

"Thanks to a dynamic energy sector and active support from councils and communities, the U.K. is one of the world’s fastest-growing and most interesting markets for solar," said Conergy global COO Alexander Gorski.

"Lumicity has a strong record in the development of renewable energy projects, and the deal supports both Conergy’s power plants strategy and the expansion of its international pipeline."

Beyond the U.K., Conergy has also secured a $60 million bank guarantee facility for an expansion of its solar projects business by as much as 400 MW. Arranged by Deutsche Bank and financed by Tennenbaum Capital Partners LLC, the financing facility has also been backed by Kawa Capital Management – Conergy’s majority shareholder – and will be used to support the company’s EPC, O&M and new business objectives.

U.K. for F&S Solar

The U.K.’s growing appeal has also piqued the interest of German solar developer F&S Solar, which has announced this week the forthcoming development of a 4.8 MW solar PV plant in Caddington, southern England. Once finalized, the plant will cover 60 hectares and comprise 13,000 solar panels capable of producing solar energy for 1,275 local households every year. The total cost of the project runs to $10 million, and financing is already secured, according to Martin Wagner, head of international project management at F&S Solar.