Michelmores advises Zestec on their partnership with Octopus Renewables to deliver UK solar asset development
Michelmores Energy Team has advised Zestec Asset Management, trading as Zestec Renewable Energy (“Zestec”), on its partnership with Octopus Renewables, the specialist clean energy investor arm of Octopus Group, 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.
Under an established Power Purchase Agreement (PPA) model, which varies between 10 and 25 years depending on the situation, landlords pay for electricity produced by the solar PV system at a reduced rate compared to the majority of current power suppliers. It is Octopus and Zestec's ambition to bring this opportunity to sign PPAs to as many organisations as possible.
Michelmores advised Zestec on the commercial agreement with Octopus as well as the underlying project documents. The team involved Alexandra Watson, head of Energy Ian Holyoak, Stephen Newson and Alan Tate.
Commenting on the partnership, Alexandra Watson, Partner said:
"We are delighted to have been part of these negotiations for Zestec, using our expertise in sector to provide Zestec with strategic legal advice. The UK renewable sector is set to undergo further expansion in the coming years, and we look forward to working with clients such as Zestec and Octopus to deliver both the UK's net zero ambition as well attractive returns to investors in the sector."
In a challenging and changeable landscape of regulation, competition and subsidy, Michelmores market-leading renewable energy experience includes working with some of the UK's largest renewable developers and funders on projects from community-scale developments, to the financing and development of utility-scale installations and aggregation of portfolios of projects for institutional investors.