Octopus Renewables, the specialist clean energy investor arm of Octopus Group, has partnered with Zestec Asset Management, trading as Zestec Renewable Energy (“Zestec”), to deliver a target of more than £100 million of invested capital into new build UK solar assets.
With investment provided by funds managed by Octopus, the deal aims to capitalise on the continually developing fully-funded solar market, with the agreement focusing on rooftop solar and private wire ground-mount systems. The partnership already has well over £10 million of projects contracted and continues to build a strong pipeline of opportunities.
Octopus Renewables has over the last decade grown to become one of Europe’s leading investors in onshore renewables, and this partnership is a further indication of the company’s desire to continue to grow its portfolio in the market. Partnering with Zestec allows Octopus to build a powerful combination of funding, knowledge and experience of developing the highest quality assets for its clients.
The long-term approach taken by Octopus in this sector will reassure landlords seeking a strong counterparty to give them the confidence that the asset will be maintained to the highest standards over its lifetime.
Under an established Power Purchase Agreement (“PPA”) model, landlords pay for electricity produced by the solar PV system at a reduced rate compared to the majority of current power suppliers.
PPA arrangements will vary between 10 and 25 years, depending on the situation and the requirements of the business owners and landlords. It is Octopus and Zestec’s ambition to bring this opportunity to sign PPAs to as many organisations as possible.
Peter Dias, Investment Director at Octopus Renewables, comments:
“Our belief is that we are still only at the beginning of the renewable energy revolution and that this sector will continue to develop.
“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. Both parties have a shared philosophy in delivering quality in everything we do, and believe in the importance of driving toward a future powered by renewable energy, making this a natural partnership.
“We look forward to working together and with our clients to build a portfolio of impactful renewable energy assets that make a real difference to their businesses, and continue to move the UK towards crucial net zero goals.”
Simon Booth, COO at Zestec Renewable Energy added:
“Octopus and Zestec share a similar philosophy both in term of the importance of renewable energy, the opportunity that it represents 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. As Peter mentions, we are an innovative partnership and will continue to identify other areas we can deploy funds that support the growth of the industry and the move to a cleaner world.”
For journalists in their professional capacity only. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: May 2021.