August 2 (SeeNews) - UK solar company Lightsource Renewable Energy today said it has connected the UK's first Contracts for Difference (CfD) solar farm, the 11.94-MW Charity Farm installation in Shropshire.
With GBP 8.7 million (USD 11.4m/EUR 10.4m) of funding from The Royal Bank of Scotland plc, the system was connected to the grid on June 30. It is one of five solar projects that won support in the first round of CfD auctions in 2015.
Charity Farm's CfD was for a strike price of GBP 79.23 per MWh (2012 price).
"A truly competitive system is fair to all concerned, but there has been no new round of auctions announced for solar as yet and, if the UK is serious about the future of its energy security, it is important that this is addressed," said Lightsource chief executive Nick Boyle.
Lightsource partnered up with engineering, procurement and construction (EPC) contractor Biosar Energy (UK) Ltd to install the park, which is expected to produce enough electricity to power more than 4,000 homes. Supplier Axpo UK Ltd will buy the installation's entire output in a deal worth GBP 7.5 million over seven years.
(GBP 1.0 = USD 1.313/EUR 1.194)