Shell has made its first foray into the UK solar power sector by forming partnerships that could see at least 800 MW of capacity.
The larger of the two partnerships is with Island Green Power, a leading developer of solar photovoltaic (PV) plants, for an initial portfolio of 700 MW or more, together with co-located battery storage. The other partnership is with Clearstone Energy for projects totalling 100 MW, again with potential for energy storage. The future development of these projects is still subject to a final investment decision, however.
David Bunch, the Chairman of Shell UK, said about the new partnerships:
“Shell is building an integrated power business which spans the renewable generation, trading and supply of clean energy to businesses and consumers. We will work with both Island Green Power and Clearstone Energy to deliver high-quality solar PV projects to supply more of our UK customers with renewable power.”
Like many oil companies, Shell is looking to offer more low-carbon products, such as its Shell Naturelle transformer oil. It also entered the UK energy supply market when it acquired First Utility and rebranded it as Shell Energy.
New solar PV and wind projects are widely thought to be necessary to achieve the UK government’s aim of being predominantly dependent on nuclear and renewable energy by 2035. Government support for solar projects is relatively limited in comparison to offshore wind projects, however, but Shell is well positioned to generate renewable electricity and supply it to its own customers.
