DIF to acquire UK’s largest co-located solar and battery energy storage portfolio

DIF Capital Partners, together with ib vogt, has agreed to acquire a 100% interest in the largest UK co-located solar and battery portfolio from Cero Generation and Enso Energy, the companies confirmed.

The fund manager will acquire a ready-to-build co-located solar and battery portfolio from Enso Green Holdings Limited (EGHL), a joint venture established between Cero Generation and Enso Energy. The DIF acquisition will be secured via DIF’s Infrastructure VII fund which is set to secure a 90% interest.

The portfolio is recognised as the UK’s largest co-location portfolio of solar and battery energy storage, consisting of seven sites and a total capacity of 720MW. Of this, 380MW is solar and 340MW is battery energy storage. Solar EPC and O&M services will be provided by construction engineering company ib vogt.

“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,” said Gijs Voskuyl, partner and head of infrastructure at DIF Capital Partners.

“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. DIF is continuing to work closely with Enso Energy and Cero Generation to bring the remaining assets in the portfolio to ready-to-build stage and is excited to make this investment in a partnership with ib vogt.”

The acquisition of each project will be completed once each site has reached the ready-to-build phase with the first two having already been acquired and currently under construction. It is hoped that all projects acquired by mid-2023 will be operational between 2024 and 2026.

The projects will also be able to benefit from forthcoming contracts for difference (CfD) contracts or power purchase agreements (PPAs) with corporate or utility offtakers.

“We are delighted that DIF and ib vogt will be taking forward this sizeable portfolio into the next phase of its lifecycle. They will be continuing our work with Enso Energy following the development of the projects from conception through planning, and successfully to ready-to-build,” said Marta Martínez Queimadelos, CEO of Cero Generation.

“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 decarbonisation 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.”