Voltalia UK has raised £18.9m of new loan funding from Triodos Bank UK, which will enable the energy producer to construct a new, subsidy-free photovoltaic plant with a capacity of 34MW near Scarborough, North Yorkshire.
Voltalia’s £20m finance package consists of a construction and long-term operating loan of up to £18.9 million and a Debt Service Reserve Facility (DSRF) of €1.1 million. Construction is currently underway, and the plant is scheduled for commissioning by the end of 2025.
Once complete, the Eastgate Solar project will feature 62,500 solar panels. The project has a 15-year Corporate Power Purchase Agreement in place with The Co-operative Group, fulfilling 7.5% of the Co-op’s electricity consumption within its food stores, distribution centres and funeral care homes across the UK.
Yoni Ammar, deputy CEO of Voltalia, commented:“This significant investment reinforces our commitment to expanding our renewable energy footprint. We’re dedicated to developing projects that drive positive environmental and social impact and are proud to play a significant role in advancing the UK’s transition to a cleaner, more sustainable energy future.”
Triodos Bank UK, which specialises in finance for organisations with a clear social and environmental purpose, has three decades of experience in the renewable energy sector.
Chris Cullen, senior relationship manager at Triodos Bank UK, added:“We’re pleased to be supporting Voltalia UK in its plans to further increase its renewable energy capacity. The Eastgate Solar project demonstrates how organisations with similar ambitions for a low-carbon future can work together to invest in renewable energy sources, drive demand for clean power, and create a stable market for sustainable energy projects.”
Voltalia were advised by Michelmores, while Triodos Bank UK received legal counsel from CMS.