CashNews.co
Renewable energy developer Aura Power has successfully secured financing for the 49.9MW Kemble Solar Farm.
The Bristol-based developer has reached financial close on a £30 million debt facility for construction of the solar farm from Coöperatieve Rabobank U.A. The Kemble Solar Farm, which is to be located near Cirencester, Gloucstershire, is the first of a series of eight ready to build projects to secure finance. Aura Power’s eight ready to build projects, all of which secured planning permission in the past 24 months, will have a total capacity of over 500MWp once completed.
Aura Power secured planning permission for the Kemble Solar Farm in April 2022. Since then, preparatatory works for construction have taken place, including archeological excavation works and pre-construction ecological surveys. Construction of the main site is set to begin in spring 2025.
According to Aura Power, the planning proposals for the project will deliver a biodiversity net gain of 30% on site. The project proposals also include a £20,000 annual community benefit fund designed to support residents in the local area.
Simon Coulson, CEO of Aura Power, said: “Securing project financing for this project is a significant milestone for Aura Power. It marks not just the start of construction but a new direction for the company as we move towards an Independent Power Producer model.”
Kemble Solar Farm was successful in the UK Government’s Contracts for Difference (CfD) Allocation Round 5 (AR5) in 2023, with the solar industry standing out as a relatively rare success in what was seen as a disappointing Allocation Round for the renewable energy industry.
The most recent Allocation Round, AR6, saw a massive success for the solar industry, with solar energy projects securing 3.3GW of support across 93 projects, a record for the sector. In AR6, solar PV secured a strike price of £50.07/MWh, significantly higher than that achieved in either AR4 (£45.99/MWh) or AR5 (47.00/MWh).
Another finance success for Aura Power
This news comes in what has been a positive year for Aura Power. In early May of this year, the company announced that it had successfully secured £10 million of funding in the form of a debt facility from Novuna Business Finance, which is part of Mitsubishi HC Capital UK PLC. Aura Power said that this funding will be used to help progress global development for the company, by funding grid payments, planning fees and legal land costs.
In late December of last year, Aura Power also took another step forward with its battery energy storage system (BESS) ambitions, securing planning permission for a 4-hour BESS. The 100MW/400MWh project will be located in Capenhurst, Cheshire, and will feed directly into the local substation.aa