PACE Submits its First UK Solar Project Plan

Summary

• Pathfinder Clean Energy (PACE) has submitted plans for its first subsidy-free solar projects in the UK
• The projects include two planning applications for solar farms
• The projects aims to provide power to approximately 12,500 households and will cut down CO2 emissions by 10,000 tonnes annually
• The development of renewable energy sources and carbon capture and storage will play a vital role in reducing the production of harmful greenhouse gases

UK-headquartered international developer of utility scale solar and battery storage projects Pathfinder Clean Energy (PACE) has successfully submitted its first subsidy-free solar projects into planning in the UK. Two planning applications for solar farms with a total capacity of 40 megawatts have been submitted separately. The projects aim at providing power to approximately 12,500 households and will result in the reduction of CO2 emissions by 10,000 tonnes annually, along with the ability to co-locate energy storage.

The two projects -- ‘Three Bridges’, situated seven miles north-east of Dereham, and Burgate, situated eight miles north of Norwich, respectively, are based on agricultural lands. The operations of the two projects will commence from mid-2021, depending on planning and financing.

The projects in focus

Alex Ross, Director of PACE Developments in the UK, believes that the company has been efficient in filtering the projects because of the development of bespoke grid and constraint analysis techniques, evaluating nearly 2GW of grid capacity and projects. A target of constructing over 300MW in the next three years is on the cards.

Managing Director of PACE Rob Denman said that it has been a great achievement for the company for having submitted the first subsidy-free projects into planning in the UK and has set the target for construction of both the projects by mid-2021.

Solar power

Established in 2017, PACE is an international clean energy developer and investor working on solar and battery storage projects, which was co-founded by Denman and Ross. The company has its presence in Spain, Canada and Britain, and will soon be starting its operations in Poland. From development to financing, construction and operation, PACE has plans to develop over 1GW of solar projects in the UK and overseas. Their solar projects in Canada and Spain are at an advanced stage.

The latest cloud-based proprietary technology enables the company to collaborate across global markets and the projects help them in offering competitive power prices under PPAs (Power Purchase Agreements) or bids into government auctions.

UK’s Renewable Energy target

The UK is a wealthy nation in terms of energy resources and it radically needs to increase its use of renewable energy. Coal, oil, and gas have been the only source of supply in the past. For future energy needs, the UK is definitely looking at renewable resources. Increasing the proportion of energy obtained from renewable sources will increase the energy supplies and will also provide opportunities for investment in new industries and new technologies.

Climate change is one of the greatest threats as per the UK Government and has been looking for a robust action. The development of renewable energy sources and carbon capture and storage will play a vital role in reducing pollution levels and enable the UK to play its part in global climate change efforts.

Green and clean energy projects

Build Back Greener is a new plan that has been set out by PM Boris Johnson, which aims at making the UK as the world leader in clean wind energy, which will help create jobs, reduce carbon emissions and boost exports.

Boosting exports: To upgrade ports and infrastructure across communities, like in Teesside and Humber in Northern England, Scotland and Wales, an investment of £160 million will be made to increase the offshore wind capacity. Meeting 10 per cent of the UK’s electricity demand, the offshore wind capacity is already the largest in the world.

Employment Generation: The new project will result in creation of 2,000 construction jobs and will enable the sector to support up to 60,000 jobs directly and indirectly by 2030.

Slashing carbon emissions: Johnson has set out commitments to ensure that the UK will be at the forefront of the green industrial revolution in the next 10 years with acceleration in the progress towards net zero emissions by 2050.

The programmes will involve providing electricity to every house in the UK by 2030 with the help of offshore wind. For this, the government has raised the previous 30GW target to 40GW.

The government has been setting up targets to increase the capacity of renewable energy by 50 per cent in the next ‘Contracts for Difference’ auction. This will help in providing clean and low-cost energy to power up to 10 million homes.

Let us now discuss the stock performance of two LSE listed companies in the renewable energy space namely Greencoat UK and Drax.

Stock performance

Greencoat UK (LON:UKW)

The company invested £51 million into Slieve Divena II wind farm for the first half ending 30 June. This has led to an increase in the generating capacity of nearly 1GW. Greencoat UK has announced a £320 million commitment to acquire South Kyle wind farm, which is expected to take place in 2023.

The stock of UKW was trading at GBX 135.80 on 13 October at 1:49 PM, up by 0.30 per cent from its previous close of GBX 135.40. The stock’s 52-week low/high price range was recorded as GBX 102.00/152.80. The company’s total outstanding market capitalisation stood at £2,469.45 million.

Drax Group PLC (LON:DRX)

The company has been successful in generating flexible, reliable and renewable electricity for the UK businesses. It has been strategized to reduce the costs of sustainable biomass and is making continuous progress in pioneering bio-energy with carbon capture technologies (BECCS) to help the UK meet its 2050 net-zero carbon target.

The stock of DRX was trading at GBX 292.40 on 13 October at 1:52 PM, down by 1.22 per cent from its previous close of GBX 296.00. The stock’s 52-week low/high price range was recorded as GBX 126.40/334.20. The company’s total outstanding market capitalisation stood at £1,174.91 million. 

Conclusion

With the depletion in the non-renewable resources and increasing pollution, it becomes very essential for most countries to focus on making the world a cleaner and greener place. The UK has successfully planned its investment to develop a green environment, by cutting down carbon emissions and producing electricity with the help of renewable resources available.