Tesco and Shell Secure 100% of Cleve Hill Solar Output

• Tesco and Shell team up to harness power from the UK's largest solar project, fueling 102,000 homes with renewable energy by 2025. Sustainability meets innovation!

Tesco and Shell have secured a long-term contract for the entire output of Quinbrook Infrastructure Partners' Cleve Hill solar project in the UK, a 373-MW solar-plus-storage initiative expected to launch in early 2025. Tesco's agreement, the UK's largest corporate solar power purchase agreement (PPA), spans 15 years and covers approximately 65% of expected solar generation, while Shell's 10-year route-to-market agreement (RTMA) manages the remaining 35% of Cleve Hill’s capacity.

Located on the north Kent coast, the Cleve Hill Solar Park will feature a 150-MW battery energy storage system, producing enough energy for 102,000 local homes. Quinbrook recently appointed Greek industrial group Mytilineos SA as the project’s engineering, procurement, and construction contractor.

How will Tesco and Shell's contract impact the Cleve Hill solar project's future?

• Increased Renewable Energy Adoption: The long-term contracts between Tesco and Shell reinforce the transition toward renewable energy on a corporate scale. By securing the output from Cleve Hill, both companies demonstrate a commitment to low-carbon energy sources, thereby setting a precedent for others in the retail and energy sectors.
• Reliability of Supply: The partnership provides Tesco with a reliable source of clean energy, helping the retailer to achieve its sustainability targets and reducing reliance on fossil fuels. This stability in renewable energy supply enhances the sustainability of Tesco’s operations.
• Financial Implications: The agreements could offer financial certainty for both Tesco and Shell. By locking in prices for solar power over a long duration, both companies can protect themselves against future energy price volatility, which is particularly important in the current energy market.
• Boost to Local Economy: Cleve Hill’s solar project will likely create jobs during the construction phase, as well as ongoing maintenance roles post-launch. This contributes positively to the local economy of the north Kent region.
• Showcasing Innovative Energy Solutions: The combination of solar power generation with battery storage presents an innovative energy solution. This enables better management of energy supply, particularly during peak demand times, enhancing the efficiency of renewable energy resources.
• Enhanced Corporate Image: Both Tesco and Shell are expected to enhance their corporate images through this commitment to renewable energy. Consumers increasingly favor companies that demonstrate environmental responsibility, which can drive customer loyalty and improve brand perception.
• Regulatory Compliance and Environmental Goals: This contract may help both companies meet governmental and regulatory requirements regarding renewable energy usage and emissions reductions, facilitating progress toward national targets for climate action.
• Future of Solar Energy Projects: The successful implementation and operationalization of the Cleve Hill project could serve as a blueprint for future solar energy projects in the UK and beyond, highlighting how corporate partnerships can effectively drive renewable energy initiatives.
• Potential for Innovation in Energy Trading: With Shell managing a portion of the energy output, there may be opportunities to explore innovative energy trading solutions. This could involve leveraging technology to optimize energy distribution and increase efficiency.
• Scalability of the Model: The Cleve Hill project's framework may encourage more large-scale solar developments, showing that corporate solar Power Purchase Agreements (PPAs) can sustain vast renewable projects, prompting other businesses to consider similar contracts as part of their energy strategies.
• Long-term Environmental Impact: The Cleve Hill solar project has the potential to significantly reduce carbon emissions by providing renewable energy to local homes, aligning with broader goals to mitigate climate change and promote sustainable energy use in the UK.
• Community Engagement and Benefits: The project can lead to increased community engagement as local stakeholders may be involved in discussions around sustainable energy initiatives and the direct benefits that arise from having a significant renewable energy source nearby, fostering goodwill between the developer and the community.