Wragge Lawrence Graham & Co's energy specialists have advised Primrose Solar (Primrose) on a 104 MW transaction with EDF Energy, one of the UK’s largest energy companies.
Primrose has signed long-term Power Purchase Agreements with EDF Energy for five of its existing solar farms, which includes the UK's largest, in Hampshire. These farms total 104 MWp (Megawatt Peak) of capacity, enough to power approximately 31,500 average homes.
Partner Gus Wood led on the deal, with support from associate Alexandra Poynter.
Gus said: "It's great to see Primrose's hard work in delivering these solar projects come to fruition. These long-term power purchase agreements are another important step for the projects, and secure a long-term income stream for them.
"It was a pleasure to be able to use our expertise in this area to ensure a swift and successful completion for Primrose, with whom the firm has a longstanding relationship."
Under the deal, EDF Energy will provide an inflation-linked minimum price for power over the full term of the contract. This price floor improves Primrose Solar's ability to raise capital against the projects as it increases the level of fixed revenues lenders use to size debt and improves project returns.
The volatile nature of wholesale power prices makes the long-term floor guarantee from a high credit rated entity particularly attractive.
Giles Clark, CEO, Primrose Solar, said: "We're very pleased to be working with EDF Energy as a provider of secure, long-term offtake agreements for the sale of the power that we generate. As ever, we were able to rely on Wragge Lawrence Graham & Co's energy specialists to deliver insightful and commercial legal advice, ensuring the deal with EDF Energy completed successfully."
Primrose owns and operates solar farms throughout the UK. It has 10 solar farms representing 184 MW of installed capacity, of which 156 MW are now operating with a further 2 MW under construction.
Earlier this month Wragge Lawrence Graham & Co's Energy team advised Primrose on its latest acquisition - a 9.5MW solar farm in Cornwall. Previously the team has worked with Primrose on two refinancing deals worth £60 million and has assisted the client in closing four previous acquisition transactions.
EDF Energy supplies gas and electricity to 6 million business and residential customer accounts and is the biggest supplier of electricity by volume in Great Britain.
