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CfD Merchant Nose PPA secured for British Solar Renewables

May 7 2024

British Solar Renewables (BSR) is a leading integrated solar developer that develops, builds, and manages utility-scale solar and storage projects in the UK and internationally. They have developed 617MW and built 749MW across 59 projects to-date as part of their commitment to the long-term future of a decarbonised energy sector. By collaborating with landowners, environmental experts, and planning authorities, each project aims for a 60% net biodiversity gain through eco-initiatives such as wildflower planting.

BSR utilised the Renewable Exchange platform to optimise the initial PPA for their Aller Langport project, securing a competitive price from the market and contracting via the Lightning PPA.

Aller Langport is a solar project in Somerset developed, built, and managed by BSR. Having successfully secured a government-backed CfD in AR5, BSR required a fixed-price PPA for the period prior to the start of the CfD (commonly termed the ‘merchant nose’) to provide revenue certainty during the project’s crucial commissioning and initial operation phase.

The Renewable Exchange platform uses wholesale power prices and technical data to calculate daily bespoke project-specific PPA forecasts for renewable projects. BSR monitored the price forecasts for Aller Langport, and launched a tender once market conditions were optimal.

BSR were able to secure the most competitive price available from the market with a creditworthy counterparty using the Lightning PPA (Renewable Exchange’s standard-form PPA), which included additional credit support to further minimise risk.

BSR chose Renewable Exchange for:
• Project-specific PPA price forecasting
• Access to the whole market of utility offtakers
• Efficient online PPA tendering process
• Execution via the Lightning PPA

“The Renewable Exchange platform has enabled BSR to seamlessly tender for and execute PPAs. Their team have great insight into the market and potential offtakers, and offer exceptional support, especially on the crucial point of when to tender given recent market conditions” said Frankie Hickman, Investment Manager at British Solar Renewables.

The Renewable Exchange platform produces bespoke project-specific price forecasts daily, which can be monitored and tracked over time. When it’s time to secure the PPA, the platform provides access to the whole market of utility offtakers via a simple and efficient tender process. Contracts can then be executed digitally via Renewable Exchange’s standard-form Lightning PPA.

For more contact our PPA team: [email protected]

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