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CMS advises re:cap on acquisition of solar and battery project

6 February 2023

International law firm CMS has advised re:cap global investors ag (re:cap) on the acquisition of Scurf Dyke Solar Ltd, its latest investment in the energy transition of the UK. Scurf Dyke Solar is a 80MW co-located solar and battery project in Yorkshire, which will be partially supported by a Contract for Difference. 

RE Infrastructure Opportunities Fund (the Fund) is a fund launched by FP Lux Investments and re:cap which acts as acquisition vehicle for the transaction. The Fund invests in solar and wind power, hydropower and battery storage projects. This latest acquisition is the Fund’s largest acquisition to-date, seeing the Fund grow to 14 projects at 27 locations with a total capacity of around 400 MWp.

BayWa r.e., a global renewable energy developer, service supplier, wholesaler and energy solutions provider, is constructing the project which is scheduled to go into operation before the end of 2023. BayWa r.e. is also providing commercial asset management services and will be responsible for the subsequent operation and management.

Commenting on the deal, Dr Nils Hammon, Managing Director, re:cap global investors ag said: “With the acquisition of the solar park “Scurf Dyke Solar Ltd” we are further diversifying our RE Infrastructure Opportunities fund both geographically and technologically. Not only is the acquisition of the project the market entry for RE Infrastructure Opportunities in the UK but also an investment into a new technology with the project’s co-located battery storage solution alongside the 80 MWp solar farm. On the solar side, we were successful to secure an indexed-linked CfD contract with a term of 15 years, thus offering stable and inflation-protected cash flows. In view of the current development of consumer prices, this is highly attractive for our investors.”

Partner Louise Dalton, Energy & Climate Change, CMS added: “We were delighted to support re:cap on this market-leading co-location investment. The combination of solar plus storage is an exciting development in the UK’s progress towards a flexible net-zero future – both in terms of maximising the penetration of renewable energy and optimising the utilisation of constrained network capacity.”

The CMS team was led by Louise Dalton and Doug Land. Wider support was provided by Nicola Curry, James Day, Matty Desmond and Kate Ford (Corporate); Philip Duffield, Tom Pemberton and Hanna Rannikmae (Energy); Sandra Potlog (Competition); Patrick Fenlon (Planning); Andrea McLellan and Alex Illingworth (Real Estate); and Jason Todd and Yao Chua (Tax).