Santander UK has provided £25 million in funding to South Farm Solar, a subsidiary of Voltalia, to support the construction and operation of a new photovoltaic (PV) project. The project is expected to supply more than half of the electricity needed by the City of London Corporation.
South Farm Solar is a ground-mounted solar farm located near Spetisbury, Dorset, with a capacity of 49.9MW. Voltalia has been responsible for the development, construction, operation, and maintenance of the facility. The solar farm has successfully obtained a grid connection certification in December 2022 and has been supplying electricity to the City Corporation since January. This renewable energy source powers prominent London landmarks, including Tower Bridge, Hampstead Heath, the Barbican Centre, and the historic Guildhall headquarters.
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This funding provided by Santander UK demonstrates the bank’s commitment to supporting renewable energy generation projects that do not rely on government subsidies. In addition to financial assistance, Santander’s funding package includes Consumer Price Index (CPI) hedging for South Farm Solar Ltd. This hedging mechanism provides the solar farm with increased certainty regarding its revenue generation over the next 15 years.
Under a 15-year power purchase agreement (PPA), the City Corporation has agreed to purchase 100% of the power generated by South Farm. This agreement aligns with the City Corporation’s Climate Action Strategy, which aims to achieve net-zero emissions in its own operations by 2027 and in its investments and supply chain by 2040. The City Corporation also seeks to contribute to the net-zero goal for the entire Square Mile, a financial district in London, by the same year.
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Voltalia, with its UK country manager Simon Holt, expressed satisfaction with the collaboration with Santander UK and the successful realization of the South Farm project. Holt stated, “Through our work with Santander UK in funding the South Farm project, we have been able to fully realize a brand new, substantial green energy project at South Farm, Dorset. We expect an increasing number of companies and organizations in the UK to be switching to cleaner, sustainable, renewable energy supplies, and we will continue to deliver a net-zero power purchase solution as our portfolio grows. The UK has the capacity, enthusiasm, and the sunshine to deliver many more of these projects in the coming decades, and we hope that projects like South Farm add to the bankability and confidence in UK renewables.”
Voltalia has been actively involved in renewable energy projects in the UK, having undertaken 23 projects with a combined capacity of 193MW. South Farm represents Voltalia’s largest solar energy facility to date and is located near its other solar photovoltaic farms at Clifton Farm and Higher Stockbridge.
