Investment group Macquarie Infrastructure Debt Investment Solutions (MIDIS) has financed a new, 29 MW solar PV plant in south Wales, U.K., for Quercus Assets Selection.
The £21.5 million ($33.2 million) project utilizes 113,000 solar panels and is located across 56 hectares of land in Pembrokeshire, southwest Wales. A 15-year power purchase agreement (PPA) has been agreed with Norwegian utility company Statkraft.
Financing has been approved via a split index-lined and fixed-rate tranche, allowing project owner Quercus Assets Selection to spread the cost of the facility across a 19-year financing term, covering the construction and operational periods.
Increasingly, U.K. and European sponsors and developers of renewable energy projects require innovative solutions to address their financing requirements, said MIDIS SVP Kit Hamilton. We worked closely with Quercus to understand their business needs, the construction risk and long-dated maturity profile, and look forward to rolling out this solution to other project in their pipeline.
The solar farm will be one of the largest utility-scale installations in the U.K. once complete, and will become a leading light in Wales burgeoning solar landscape.