Danish renewable energy infrastructure investor Copenhagen Infrastructure Partners (CIP) is set to invest £250 million and take a majority stake in UK solar developer Elgin Energy.
CIP is one of the world’s largest renewable energy investment funds, raising approximately £24 billion in funding and managing a project pipeline of 120GW.
The firm has invested extensively in offshore wind, including in Scotland, the US and Japan, as well as onshore wind, solar, Power-to-X and other renewables.
CIP will now seek to transform London-based Elgin into an independent power producer (IPP), making the firm a fully integrated and full-service solar and storage company.
Elgin set to grow team, expand into new markets
Building on the nearly 2GW of solar projects already delivered by the UK firm, the firms said the investment will help Elgin grow its team and project pipeline in existing and new markets.
CIP partner Nischal Agarwal said the infrastructure investor is well placed to support Elgin due to its experience in procurement and construction.
“Elgin is a perfect fit for CIP’s investment strategy given its strong leadership and culture, market leading development expertise, high quality pipeline of scale and significant growth potential in markets with attractive fundamentals,” Mr Agarwal said.
Elgin chief executive officer Ronan Kilduff said the strategic partnership aligns with the company’s vision to become “the leading European solar company”.
© Image: Liam McBurney/RAZORPIX“Given CIP’s industrial background and approach, they are an ideal partner for Elgin in its next phase of growth and transformation into an IPP,” Mr Kilduff said.
“With CIP’s support, we are well-positioned to achieve our ambitious goals, including our commitment to create over 100 new jobs at Elgin, and accelerate towards a net zero future.”
UK solar energy
Since it was founded in 2009, Elgin said it has delivered close to 2GW of ready-to-build solar photovoltaic and storage projects.
Elgin currently operates more than 20 solar projects across the UK, with another 28 in the pipeline.
The company has eight projects in Scotland, including two in Aberdeenshire.
Globally, Elgin said it has more than 15GW of solar projects currently in its pipeline, including projects in Ireland, Australia and Germany.
The UK government is aiming to rapidly scale up the deployment of solar energy, with a target to reach up to 70GW of solar capacity by 2035.
According to Scottish Renewables, there is potential in Scotland for 11GW of roof-mounted solar PV to be installed across the country, providing nearly a third of Scotland’s current electricity needs.
However, much like in the offshore wind sector, the roll-out of solar energy projects in the UK is being hampered by inflation, supply chain disruption, rising interest rates and delays in grid connections, putting the 2035 target in doubt.
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