Shell has taken further strides into the energy supply market by signing a five-year power purchase agreement with British Solar Renewables Ltd (BSR).
BSR, which builds, connects and manages utility-scale solar and storage projects for developers and investors, has agreed a five-year offtake agreement with Shell Energy Europe Ltd, a major European integrated energy marketing and trading company, for the renewable power generated from the Bradenstoke solar power plant.
Shell said it will supply the power generated there to customers in the UK seeking to meet their needs with renewable energy.
This follows a festive announcement from the oil giant to buy 100 per cent of independent energy provider, First Utility – the deal is set to complete in early 2018, subject to “regulatory and other approvals”.
Shell said its motivation for that deal was expanding its energy supply business from commercial and industrial customers into the residential sector, which would allow it to bring its products and services to more customers. It also acquired a 44 per cent interest in the US-based solar company Silicon Ranch earlier this week.
Bradenstoke solar power plant in Oxfordshire, the largest of its kind in England and the second largest in the UK, is made up of 269,000 panels, has a 69.8MW peak capacity and a 50MW AC export capacity. Covering 213 acres of the former RAF Lyneham base, it currently generates approximately 65 GWh of clean solar energy annually, which saves in excess of 21,000 tonnes of CO2 a year.
Graham Harding, MD and CFO of BSR, said of the deal: “PPAs provide stability in a volatile energy market.”
When questioned as to whether this deal will therefore be one of many PPA deals BSR will invest in, he told Utility Week: “The negotiation and management of PPAs, such as that with Shell, are an important part of the management of assets that we undertake, but definitely not the main focus.”
Jonathan McCloy, GM North West Europe for Shell Energy Europe Ltd, said: “The UK is one of our key markets for power and we’ve been exploring ways to increase our power presence in the country on both the buy and sell side. The deal with BSR helps us achieve this goal and is a significant boost to our renewable power portfolio in the UK.”
Shell Energy Europe Ltd currently operates in 14 European power markets, which includes the offtake of renewable power from wind farms and solar parks in the UK and mainland Europe.