Tesco signs UK’s largest ever solar power deal

Tesco has announced a groundbreaking agreement to purchase solar power that will run 144 of its large supermarkets, in what is being hailed as the largest corporate solar power deal in the UK.

The supermarket chain will buy nearly two-thirds of the electricity output from the Cleve Hill solar park in Kent, currently under construction.

The £450 million solar park, located on farmland near Faversham, is being developed by Quinbrook Infrastructure Partners. It will provide Tesco with up to 10 per cent of its UK electricity demand over a 15-year period. The retailer stated that the clean energy generated would be sufficient to power 144 of its large stores for a year.

Cleve Hill, situated on the north Kent coast, is set to become the UK’s largest solar and battery storage project with a capacity of 373 megawatts. Construction began in early 2023, with operations expected to commence in early 2025. The site will feature more than 560,000 solar panels and energy storage infrastructure, making it a significant contributor to the UK’s renewable energy landscape.

Ken Murphy, group chief executive of Tesco, commented on the deal: “We’re delighted to be announcing such a significant step in our journey towards carbon neutrality across our own operations by 2035. Cleve Hill solar park, with its ability to generate up to 10 per cent of our UK electricity demand, joins a number of other Power Purchase Agreements we’ve announced over the last five years.”

This latest agreement is part of Tesco’s broader strategy to source green electricity directly from wind farms and solar parks across the UK. With the addition of Cleve Hill to its portfolio, power purchase agreements will cover 45 per cent of Tesco UK’s or 36 per cent of the group’s expected electricity demand by 2030.

Keith Gains, managing director and UK regional lead at Quinbrook, expressed pride in the project: “Tesco’s commitment to Cleve Hill Solar Park underscores the value of the project which has set new benchmarks for UK solar. Quinbrook is proud of developing Cleve Hill as we believe it is a blueprint for the next generation of energy transition infrastructure in the UK.”

The deal highlights the growing importance of corporate power purchase agreements in driving the UK’s transition to renewable energy. In the first quarter of 2023, renewables generated 48 per cent of all UK electricity, demonstrating the increasing role of clean energy in the country’s power mix.