DIF Capital Partners acquires EGHL solar-storage portfolio

DIF Capital Partners has made its first direct investment in utility-scale energy storage after agreeing a deal – in partnership with construction engineering company ib vogt – to acquire a 100 per cent interest in a UK greenfield portfolio of ready-to-build co-located solar and battery projects from Enso Green Holdings Limited (EGHL).

The portfolio was developed via a joint venture involving Cero Generation and Enso Energy. DIF’s investment is being done through its DIF Infrastructure VII fund, which will acquire a 90 per cent interest.

The portfolio has been developed by EGHL and is “understood to be the largest co-location portfolio of solar and battery storage in the UK”, according to DIF, consisting of seven sites with a total capacity of 720MW, specifically 380MW of solar and 340MW of battery storage.

Solar EPC and O&M services will be provided by ib vogt.

The acquisition of each project will be completed once each site reaches the ready-to-build stage. The first two projects have already been acquired and have started construction – the expectation is that all projects will be acquired by mid-2023 and that they are operational between 2024 and 2026. All individual sites are expected to benefit from CfD contracts or PPAs with corporate or utility offtakers.

DIF and ib vogt are currently in the process of raising a non-recourse debt financing facility to fund the construction of the portfolio.

DIF was advised by Elgar Middleton, Lazard and CMS. EGHL was supported by PKF and TLT LLP through the transaction.