Railpen’s portfolio company AGR Power secures 146mw solar capacity in latest UK government power auction

AGR’s projects in Hertfordshire, Cambridgeshire and Lincolnshire, totalling a combined 146.41MW, were awarded a strike price of £65.23MWhr in the Government’s Contract for Difference Allocation Auction Round 7 (AR7).

The contract awards represent the culmination of many years of hard work across land, planning, grid, procurement and construction from the AGR and Railpen team. Development activity will now progress into the early stages of construction.

Through the contracts, the four projects will help secure the UK’s energy security, provide clean energy in line with the Government’s ambitions and serve as a power price hedge to consumers at a time when energy costs have been volatile for many of Railpen’s members in recent years. 

The UK Government predicts that the AR7 will unlock an additional £5bn of private investment and support up to 10,000 jobs.

Lewis Vanstone, Head of Infrastructure at Railpen, said: “We are delighted that AGRs projects have been successful in AR7, securing more than 146MW of low -carbon solar power and providing long-term energy price certainty for both our members and consumers. This outcome is testament to the hard work of the AGR team and the Government’s commitment to clean energy and energy sovereignty. This significant milestone in the UK’s clean energy ambition also highlights the importance of long term, patient investment in the UK. We are excited to move into the next phase of development working alongside the Government, our partners AGR and local stakeholders.”

Oliver Breidt, Founder of AGR, said: “the CfD result marks another major milestone in the development of our UK solar portfolio, allowing us to confidently continue our construction and growth ambitions. We are proud to contribute to strengthening the UK’s energy security while delivering high-quality sustainable infrastructure projects in partnership with Railpen”.

This latest milestone comes three years after Railpen first expanded into solar energy with its acquisition of Bracks Solar Farm, Cambridgeshire, in January 2023. The 30MWp capacity solar farm started operating at 100% capacity in October 2023, and now supplies clean energy to the equivalent of 8,000 UK households a year. 

Railpen plans to grow the size of its infrastructure portfolio from around £1bn currently to £2bn-£3bn over the next five years. Around 75% of this will be invested in the UK.