Schroders acquires 75% of Greencoat for £358m

Greencoat UK Solar and Innova partnership aims to deliver 5GW renewables pipeline

Greencoat UK Solar and Innova partnership aims to deliver 5GW renewables pipeline. Image: Greencoat UK

A new partnership has been agreed between Schroders Greencoat LLP and Innova Renewables to develop solar and battery storage projects in the UK. 

The two companies have jointly established ISG Renewables, a platform which aims to finance and develop 5GW of renewable energy capacity over the next three to five years. Innova currently has a distribution connected pipeline of 1.5GW of solar and storage. 

The deal sees ISG Renewables acquiring Carn Nicholas Solar Park, a 10MWp solar farm in Swansea, Wales, which was developed by Innova Renewables. The project was completed in early 2023 and is now operational.

Schroders Greencoat, formerly Greencoat Capital LLP currently manages £1.6 billion of capital through its platform Schroders Greencoat UK Solar. Innova has over 60 DNO and grid connected sites in development across the UK, with a combined solar and storage capacity of around 20GW. 

Schroders acquired a 75% shareholding in Greencoat for an initial consideration of £358 million in 2021. In February 2023, Schroders Greencoat announced that two new solar stations with 50MWp output were operational as part of a deal with Lightsource Bp and H&M to decarbonise H&M’s supply chain. 

“Schroders Greencoat will provide access to long-term capital and contribute expertise in portfolio management, operational management, and long-term asset optimisation,” the company said in a statement. Meanwhile, Innova will bring their construction experience to the table. 

ISG Renewables plans to acquire two sites which are about to become operational, with three more in design and procurement. In parallel to this, the company will also acquire third party-developed projects to meet its targets. 

“The partnership 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,” said Lee Moscovitch, a partner at Schroders Greencoat.

Innova’s director, Robin Dummett, said: “We believe this market-leading platform, which combines Innova’s development and operational expertise with Schroders Greencoat’s longstanding reputation for delivery, has the capacity to make a major contribution to the UK’s energy security and net zero targets.” 

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