UK Power Networks Services (UKPNS) has acquired UU Solar, securing a 70-asset solar, wind and hydro portfolio from SDCL Energy Efficiency Income Trust (SEEIT).
UKPNS, the commercial arm of distribution network operator UK Power Networks, unveiled the deal today (7 May). The organisation secured the 68.7MW portfolio in a £90.8 million deal.
The portfolio is spread across 70 sites in the Northwest of England and predominantly comprises solar assets. In terms of total generation, solar PV represents 90%, wind 9%, and hydro 1%.
The agreed price represents a 4.5% premium to the SDCL’s 30 September 2023 valuation. SEEIT originally acquired the portfolio in July 2022 in a deal worth approximately £100 million from United Utilities Group.
Jonathan Maxwell, CEO of the investment manager SEEIT, said: “The sale is positive news for SEEIT as it makes a meaningful contribution to its objectives to reduce short-term borrowings, to improve liquidity and to focus on investment in higher-yielding assets that support SEEIT’s total return objectives.
“UK Power Networks Services represents an excellent strategic buyer for a high-quality portfolio serving an important client. We hope to build on our relationship with United Utilities and UK Power Networks Services in the future to deliver new opportunities for SEEIT.”
UU Solar supplies all the existing on-site renewable electricity through solar, wind, mini-hydro and other technologies for the leading UK water company, United Utilities.
The portfolio is underpinned by a long-term power purchase agreement with United Utilities Water.
Director of UK Power Networks Services David Mitchell said: “Our vision is to deliver sustainable, reliable energy and we see this renewables portfolio as a natural fit. Our long-term objective is to grow our technology and geographic footprint in the renewables sector.
“We have been building our capacity in this sector in recent years and recently delivered one of the largest solar carports in the UK. This acquisition has been carefully negotiated to achieve a good price and is another example of us investing in large portfolios of key renewable UK assets.”
Solar Power Portal’s publisher, Solar Media, will host the UK Solar Summit on 4-5 June 2024 in London. The event will explore the UK’s new landscape for utility and rooftop solar, looking at the opportunities within a GW+ annual market and much more.
