North East renewables developer OnPath Energy has agreed a multimillion-pound deal to sell its Barnsdale Solar Park project in West Yorkshire. The transaction, subject to closing conditions, will see the project acquired by Octopus Renewables Infrastructure Trust plc (ORIT), a London Stock Exchange listed renewables infrastructure company managed by Octopus Energy Generation.
Project details and construction
OnPath Energy has spent the last 18 months constructing the solar park, located to the east of Leeds. Once operational, it will generate enough electricity to meet the annual requirements of up to 19,000 family homes. The project was awarded a Contract for Difference (CfD) in the Government’s fifth allocation round and is expected to connect to the National Grid via the nearby Ledston Primary electricity sub-station later this year.
Financial terms and community benefits
The total acquisition price, including remaining construction costs, will amount to approximately £34.6m. The community fund established as part of the project’s development is expected to benefit from total contributions of around £1m over the life of the project, supporting local community groups, voluntary organisations and environmental projects.
Barnsdale’s detailed ecology and biodiversity commitments will be fulfilled, delivering a 106% biodiversity net gain—more than ten times the expected outcome for a project of this type. It is set to be the biggest increase in biodiversity for any renewable energy project within Leeds to date.
Growth strategy and future plans
OnPath Energy plans to bring forward several new development proposals in England in the coming months and is exploring potential new project locations across England, Scotland and Wales as it works towards becoming the UK’s leading renewable energy developer.
Richard Dunkley, CEO at OnPath Energy, said: “Both acquisitions and sales are a critical part of our growth strategy, proceeds from selling existing assets will be used to advance our evolving pipeline of renewables projects across the UK. OnPath is continuing to execute its growth strategy with pace and purpose as we work to maximise the social, environmental, economic and energy security benefits we can deliver across our portfolio.”
He added: “Over the coming months, we will be continuing to grow our development pipeline as we bring major new renewable energy projects forward across Great Britain which will add to our plans to invest around one billion pounds in clean energy projects over the next five years.”
Buyer’s perspective
David Bird and Chris Gaydon, co-fund managers of ORIT, said: “Once the acquisition completes, Barnsdale will add further scale to our UK solar portfolio and its contracted revenues are expected to contribute to dividend cover from FY 2027 onwards.”
They added: “We are pleased to be investing at this stage of the project, with construction progressing well and Goldbeck Solar, who built ORIT’s Breach solar farm, bringing its strong track record to bear on its delivery. The acquisition also establishes a new relationship with OnPath Energy that may lead to similar opportunities in the future.”
