The portfolio benefits from long-term contracts and inflation-linked renewable incentives.
Ancala acquired an initial 51MW portfolio of 11 solar sites located across the UK in 2016 by forming a partnership with a leading UK solar developer to invest in its existing sites and acquire new sites. Ancala structured the transaction to include various downside protection measures, including retaining a significant portion of consideration until performance of the sites was proven.
We acquired a second portfolio through the partnership by providing additional funding. The acquisition added 10 solar sites, providing a further 46MW capacity, which took the combined capacity of the portfolio to 97MW.
Ancala also improved the operations of the sites, adding energy storage systems through a partnership with a battery developer. The battery system was the first portfolio scale battery deployment co-located on a solar park in the UK and required engagement from the industry regulator to approve. The batteries offer a solution to the challenges of intermittent generation by storing and deploying electricity in the national grid at the times it is required the most. We benefitted from a revenue sharing arrangement without needing to take the risk of investing capital for the batteries.