Image: Octopus Group.
Octopus Renewables has announced a new partnership with Zestec Asset Management to deliver more than £100 million of new build UK solar assets.
Funds managed by the specialist clean energy investor arm of the Octopus Group will be used to develop both rooftop solar and private wire ground-mount systems. Already, together the companies have over £10 million of contracted projects, and are continuing to build out their pipelines.
By partnering with the asset manager, Octopus Renewables aims to give landlords looking to utilise solar through the Power Purchase Agreement (PPA) model confidence that installations will be maintained throughout their life.
The PPA agreements developed through the partnership will last for between 10 and 25 years depending on the needs of the business owners and landlords.
Octopus Renewables’ investment director Peter Dias said they wanted to bring “impactful renewable energy assets” to as many organisations as possible.
“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.”
Octopus Renewables was acquired by Octopus Energy in March, bringing its £3.4 billion portfolio of 300 clean energy assets with a combined capacity of 2.8GW, or 5,042GWh at maximum capacity, into the supplier side of the Group’s business. This includes 1,290MW of large-scale solar projects and an additional 3,500 of rooftop solar assets with a capacity of 29MW.
Both Zestec and Octopus have a similar philosophy according to Simon Booth, COO at Zestec Renewable Energy, with both aware of the opportunity renewable energy offers “but also the approach to working with clients to build the highest quality generating assets".
“We are already developing our first suite of assets and look forward to continuing down this path over the coming years."
In 2019, solar investor NextEnergy Solar Fund partnered with Zestec to acquire to-be-built commercial rooftop solar projects, such as an installation at cleaning technology company Kärcher’s headquarters in Banbury.