Magnetar Solar

Customer: Magnetar Solar
Location: UK-wide
Technology: Solar PV
Installed capacity: 300MW
Customer since: 2016

Having built up one of the UK’s largest portfolios of solar PV projects, Magnetar Solar was keen to harness its strength to make the most of the clean energy generated.

With wholesale electricity prices at relatively low levels, the company wanted to be able to react quickly to market movements.

Although flexible Power Purchase Agreements (PPAs) are common among baseload generators to enable them to optimise their position in energy markets, solar developers have typically opted for fixed price products.

In what we understand is one of the longest and most flexible deals of its kind signed in the UK solar sector, Magnetar Solar has agreed to a PPA with SmartestEnergy for up to 21 years for the electricity generated at its 28 sites, which have a total capacity of over 300MW.

The highly flexible agreement provides Magnetar Solar with direct access to the live power markets through SmartestEnergy’s Energy Management Centre and the ability to hedge power down to half hourly granularity.

That enables the company to react quickly to market changes and to maximise the value of its power by locking and unlocking prices. It also provides a significant degree of transparency over the financial performance of the portfolio.

Jim Prusko of Magnetar Solar said:

“A key feature we wanted when entering a long term PPA was having the flexibility to sell our generation through a variety of routes. SmartestEnergy listened to our feedback throughout and we look forward to working with them to optimise our portfolio.”

James Graham of SmartestEnergy said:  

“Solar developers are increasingly looking at ways to make the most of their assets in a tough market to optimise the value of their exported power.

“We were delighted to be able to work closely with the Magnetar Solar team and to develop a long-term agreement which will enable them to maximise the value of their assets.”