SmartestEnergy and Low Carbon have signed new long-term power purchase agreements (PPAs) covering 300 megawatts (MW) of solar capacity in the UK, the companies said on Wednesday.
The agreements span assets awarded under Allocation Rounds 4 and 5 of the UK’s Contracts for Difference (CfD) scheme. PPAs for the AR4 projects will commence in July 2025, while those for AR5 assets are set to begin in April 2028.
The deal marks an expansion of a longstanding partnership between the two firms, which began in 2013 with projects developed under the now-closed Renewables Obligation scheme.
“These latest PPAs demonstrate the trust and commitment Low Carbon has in us to provide a competitive and bankable route to market for their CfD assets,” said Angus Widdowson, head of generation sales at SmartestEnergy.
Marco Verspuij, head of power management at Low Carbon, said the agreements play a key role in the company’s long-term planning. “This type of PPA acts as a vital tool for Low Carbon to help manage price risk as part of our growth as a next generation independent power producer,” he said.
Both companies stated the deal aligns with the UK’s broader net zero targets and supports ongoing efforts to expand the country’s renewable energy capacity.
