Common Farm is its co-located solar energy and battery storage project based to the east of Sheffield
An aerial view of Common Farm near Sheffield(Image: OnPath Energy)
North East renewables developer OnPath Energy has successfully achieved financial close on its first solar energy and battery storage project in South Yorkshire. Houghton-le-Spring based OnPath Energy is currently on site at Common Solar Park, building the 49 MW solar and 50MW two-hour battery energy storage system (BESS) close to the Todwick Road Industrial Estate in Dinnington, near Sheffield.
Once finished it will be able to generate enough homegrown electricity to meet the average annual requirements of up to 18,800 family homes. The project has a subsidy free, long-term route to market contract with a global technology company for the solar asset and a third-party optimisation agreement to support the BESS.
NatWest provided project financing for the combined asset, with the long-term agreement including a term loan and other ancillary facilities to support the project throughout its construction and operational life. Construction work on the Common Farm co-located solar and battery energy storage system is set to be completed by mid-2027.
Local consultation work is continuing around how the annual community benefits package of around £50,000 – which could equate to around £2m through the project’s lifetime – can best be used by supporting local community and environmental priorities.
Infrastructure consultancy AECOM is acting as lead consultant for the project, with specialist engineering contractor Grupotec delivering the required design, engineering, procurement and construction work, as well as operational maintenance and management work, once green electricity generation begins.
Burges Salmon provided legal advice to OnPath Energy on the deal, with AECOM providing technical advice.
Oliver Hartley, finance director at OnPath Energy, says: “While there are currently few co-located sites across the UK, especially at this scale, it makes technical and operational sense to place solar and battery technologies in the same location and allows for efficient use to be made of the available grid connections.
“Reaching financial close on our first co-located solar and battery site demonstrates the confidence that all parties have in the project’s commercial potential, the effectiveness of the different technologies we’re utilising and the strength of our relationships with our lenders, advisors and suppliers.
“Work is progressing well on the Common Farm Solar and BESS Park, which we’ve been able to deliver thanks in part to our RCF, enabling us to deliver our project plans with maximum efficiency.
“Delivering this project will further enhance OnPath Energy’s contribution towards reducing the UK’s dependence on imported fossil fuels and strengthening its energy security while also delivering a wide range of direct environmental, economic and community benefits to the local area.”
Kristofer Gibson, director, infrastructure and project finance, NatWest, added: “We are pleased to support OnPath Energy on this bilateral financing of Common Farm Solar Park, OnPath’s first UK solar and BESS co-location project. The project reflects NatWest’s ongoing commitment to financing the infrastructure required for UK’s energy transition, while further strengthening our longstanding relationship with OnPath Energy.”
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