Schroders Greencoat and Innova announce strategic partnership for solar energy and storage

The partnership has an ambition of financing and developing 5 GW of renewable energy capacity over the next three to five years, building on the current Innova distribution connected pipeline of 1.5 GW across solar and storage. ISG Renewables’ first acquisition is Carn Nicholas Solar Park, a 10 MWp solar farm in Swansea, Wales, developed and constructed by Innova Renewables. Having completed construction in early 2023, the project has been energised and is now operational. The solar asset is expected to generate clean electricity sufficient to reduce approximately 2000 tpy of CO₂ equivalent emissions.

ISG Renewables will leverage the proven experience and expertise of both parties in the development, acquisition, construction, delivery, and operational management of large scale portfolios. Schroders Greencoat will provide access to long-term capital and contribute expertise in portfolio management, operational management, and long-term asset optimisation, bringing experience from managing over 1.1 GW of solar capacity across approximately 130 solar farms in the UK. Innova will bring to the joint venture their construction and development project portfolio, and in-house expertise in the development of sites, construction, and operational management.

ISG Renewables will target a proportion of contracted revenues through contracts for difference (CfDs), private wires, and corporate power purchase agreements (PPAs), with a further two sites to be acquires which are expected to soon become operational and a further three in design and procurement in 2023. In parallel to the existing development pipeline, ISG Renewables aims to acquire third-party-developed projects across the development lifecycle to augment its development and construction pipelines, to deliver an operational portfolio which meets the partners’ shared ambitions.

Lee Moscovitch, Schroders Greencoat Partner, said: “We are very excited to be working closely with Innova to substantially grow our presence in the UK solar generation and storage market. As one of the leading renewables investors in the UK, we have been long-time front-runners in the deployment, management, and optimisation of the country’s renewable infrastructure, and we are thrilled to start so strongly with the new solar farm at Carn Nicholas, which is already operational. This opportunity brings further long-term inflation protected cashflows to our investor base, building on our existing 1.1 GW portfolio of UK solar assets. Looking to the future, ISG Renewables is well placed to contribute to the UK’s leadership position within the global energy transition, and to help meet society’s need for clean, affordable, and reliable power.”

Robin Dummett, Director at Innova, stated: “We are delighted to announce this strategic partnership with Schroders Greencoat, with Innova’s pipeline providing the cornerstone to deliver this exciting opportunity at a very large scale. Grounded in shared values and ambitions in the renewable energy sector, we believe this market-leading platform, which combines Innova’s development and operational expertise with Schroders Greencoat’s long-standing reputation for delivery, has the capacity to make a major contribution to the UK’s energy security and net zero targets. Having commenced our construction programme last year, we are delighted that our first project is now operational, with further sites expected to become operational throughout 2023, and we look forward to working with Schroders Greencoat to deliver against our shared ambitions.”

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