Quinbrook Secures Landmark Agreements for Cleve Hill Solar Park: Tesco and Shell Lead the Way

Quinbrook Infrastructure Partners secures two landmark agreements with Tesco and Shell for the 373 MW Cleve Hill Solar Park, the UK's largest solar and battery storage project, set to power Tesco's sustainability goals and Shell's energy transition efforts.

Quinbrook Infrastructure Partners, a global investment manager specializing in renewables, has signed two long-term offtake agreements, securing 100% of the solar power generated at the Cleve Hill Solar Park, the UK’s largest solar and battery storage development. The 373 MW solar and 150 MW battery storage project, set to begin operations in early 2025, is a major milestone in the UK's journey toward renewable energy expansion.

Tesco and Shell Secure Solar Power from the UK's Largest Solar Park

Cleve Hill Solar Park, located in Kent, received development consent in 2020, marking it as the first solar project of its kind to be classified as a Nationally Significant Infrastructure Project (NSIP). Quinbrook has secured two major agreements to harness the solar energy generated at the site.

The first agreement is with Tesco, which accounts for 65% of the project’s total solar generation through a 15-year Power Purchase Agreement (PPA). This is the largest corporate solar PPA ever executed in the UK, and it will supply up to 10% of Tesco’s electricity needs, a key part of the retailer’s goal to achieve carbon neutrality by 2035.

Ken Murphy, Tesco’s group chief executive, emphasized the importance of this deal: “This is a significant step in our commitment to tackling climate change and sourcing renewable energy from innovative projects like Cleve Hill.”

The remaining 35% of Cleve Hill’s solar generation will be managed by Shell through a 10-year route-to-market agreement. Shell’s involvement is secured under a 15-year Contract for Difference (CfD) that Quinbrook obtained in July 2022. Shell will be responsible for ensuring the solar energy reaches the market, furthering its role in the UK's low-carbon energy transition. Rupen Tanna, head of power and systematic trading at Shell Energy Europe, highlighted the importance of solar-plus-storage projects like Cleve Hill, noting that they will help drive the flexibility and sustainability of the UK's energy future.

Long-Term Revenue Security for Cleve Hill

These offtake agreements provide long-term, index-linked revenues for Cleve Hill, giving investors certainty and hedging against inflation. Keith Gains, managing director of Quinbrook, commented, “These deals highlight the importance of this landmark renewables project and the confidence investors have in its long-term profitability.”

The Role of Solar-Plus-Storage in the UK’s Renewable Future

The inclusion of a 150 MW battery energy storage system (BESS) in the Cleve Hill project is a key element in ensuring a stable supply of renewable energy. Although Swale Borough Council initially attempted to refuse consent for the BESS, the project ultimately overcame this hurdle, emphasizing the critical role energy storage plays in large-scale solar developments.