BlackRock adds to its UK solar investments by snapping up two more projects
A BlackRock managed fund has acquired two operational solar projects in the UK from a German developer.
The world's largest investment manager bought a 100 per cent stake in a 12-megawatt solar farm in Essex (Ardleigh) and a 5-megawatt farm in Derbyshire (Drakelow) from Germany's IB Vogt.
The farms, which are supported by 20-year fixed price green certificates, have been operated since March 2016.
BlackRock has invested in more than 20 solar projects in the UK and operates one of the largest renewable power investment platforms in the world. It acquired the assets through the Renewable Income UK fund, which targets investments in British wind and solar assets.
Read more: Wind power overtook coal in the UK for the first time ever in 2016
The firm sees Britain as an "attractive market" for wind and solar assets, said Rory O’Connor, managing director and head of renewable power for Europe.
"UK institutional investors, with their long investment horizons, are a natural fit to benefit from investment into private market assets such as renewables," said Stewart Reed, managing director of UK strategic clients.
This transaction is part of a broader one with IB Vogt, BlackRock said in a statement. The German developer will continue to provide long-term operations and maintenance services for the projects.
Read more: Germany produces half of energy from solar power for first time