Low Carbon to develop 1GW of solar PV capacity after financial close of £230 million

Low Carbon has achieved a close on a £230 million financing facility with Lloyds Bank, NatWest and AIB as it aims to develop several renewable projects including 1GW of solar PV capacity.

The senior debt facility will enable the construction of large-scale renewable energy projects across the UK and the Netherlands, the firm said.

It is also anticipated that the projects will result in the creation of at least 1GW of capacity for solar PV, providing a huge boost to decarbonisation within the two countries.

“We are delighted that three of the UK and Ireland’s leading banks have demonstrated a major endorsement of our business and its ambitions for expansion,” Roy Bedlow, founder and chief executive of Low Carbon said.

“The next decade is crucial to slowing the pace of climate change, and it is imperative that we rapidly deploy renewable energy at scale. The initial projects included in the finance facility will provide many in the UK and the Netherlands with clean, affordable energy in the years to come, and will help Low Carbon reach our strategic goals of net zero and 20GW of new renewable energy capacity by 2030.”

An initial £230 million will be injected into Low Carbon’s growing renewable portfolio which includes the construction of around 500MW of new solar PV capacity across 17 assets in the Netherlands and the UK.

Further investment could see this capacity expanded to 1GW of total solar PV capacity with the facility’s accordion feature able to raise an additional £200 million to achieve this.

Low Carbon is a renewable energy investment and asset management company that develops and operates renewables at scale.

“Sustainability is a core tenet of our strategy at AIB. We are pleased to have completed the financing of this deal which now creates an environment for future expansion, as well as a greener future,” said Ross Hamilton, director at AIB Group (UK).  

“We look forward to a long and fruitful relationship with Low Carbon and are excited to be in a position to assist the company’s scale into renewable energy infrastructure.”

The new finance facility is said to be a testament to the confidence NatWest, Lloyds Bank and AIB have placed in Low Carbon and its ability to effectively direct capital at scale into renewable energy infrastructure.

Through its landmark partnership with the US insurance giant, MassMutual, Low Carbon has set its sights on creating 20GW of new renewable energy capacity by 2030 which could be a huge boost for the solar PV sector.

“Funding the development of renewable power generation is crucial to achieving UK’s net zero targets,” said James Taylor, head of infrastructure and project finance at Lloyds Bank.

“In particular, low risk technologies such as solar PV will play a key role by accelerating the transition away from fossil fuels in a cost-effective manner. As part of Lloyds Bank’s Clean Growth Financing Initiative, we are proud to support Low Carbon in helping to deliver the UK’s carbon reduction targets.”

Low Carbon launched the second consultation for its 500MW Gate Burton solar and energy storage park in Lincolnshire in June 2022.

It is one of two solar farms that will benefit from capacity availability at this substation, due to the closure of EDF’s coal-fired Cottam Power Station in 2019. The other is a 600MW solar project being eyed by Island Green Power.