Pembrokeshire Solar Farm Will Help Power London’s Kings Cross Estate

In February this year, Shawton Energy, a UK-based renewable technology provider and solar energy solutions company which is 50% owned by global firm Lazard Asset Management acquired the Point Lane Solar Farm, from developer One Planet at the ready to build stage. The major solar farm located at Cosheston, near Pembroke Dock received planning approval back in 2023. 

New loan funding will enable Shawton Energy which already has a proven track record in rooftop solar photovoltaic (PV) development, to build its first ground-mounted solar farm in Pembrokeshire, West Wales. Construction at the site is already underway with plans for the new solar farm to be operational by the end of 2025. 

The lending has been provided by Triodos Bank UK, which has specialised in financing renewable energy projects for over 30 years and actively lends to organisations that are driving forward the clean energy agenda.

Jamie Shaw, founder and managing director of Shawton Energy, said: 

“We’re thrilled to receive the support and financing from a bank like Triodos. Our mission at Shawton Energy is to enable businesses across the UK to access cheaper, greener energy through innovative solutions and this loan will enable us to expand our portfolio and introduce ground-mounted technology to our solutions.”

Shawton Energy has signed a landmark 15-year Virtual Power Purchase agreement (VPPA) to cover the development of an 8.6MWp, 28-acre solar farm in Pembrokeshire. The Point Lane Solar Farm’s 14,000 solar panels will be used to supply 40% of London’s King’s Cross estate’s electricity demand once operational.

The company will develop, deliver, own and operate the facility delivering long-term decarbonised energy to King’s Cross under the agreement. 

A virtual power purchase agreement (VPPA) is a financial contract where a company agrees to purchase a stated amount of renewable energy from a project developer at a fixed price (the "strike price") for a set term. It differs from a physical PPA, in that there is no physical delivery of electricity to the buyer. Instead, they receive Renewable Energy Credits (RECs) or Guarantees of Origin (GOs) to support their sustainability goals. The actual energy generated is sold into the wholesale electricity market and the VPPA functions as a contract for difference (CfD). If the market price for electricity falls below the strike price, the buyer compensates the developer for the difference, and if it's above, the developer pays the buyer the difference. 

Shawton Energy’s first VPPA allows the King’s Cross estate to virtually access time-matched renewable power via a financial settlement from off-site generation. In other words, the company will provide renewable energy credits for the King’s Cross mixed-use development in central London. Due to the King’s Cross site’s location, direct access to a large renewable power generation source is not possible. 

The VPPA means that the King’s Cross estate will pay for the energy generated at the site but the electricity it receives from the grid may not have been generated at Point Lane.

King’s Cross’s deal with Shawton Energy is expected to displace 2,100 tonnes of Co2 emissions annually. This constitutes a significant milestone in the estate’s journey to becoming a net zero carbon estate by 2035. The 67-acre estate is home to 41,000 people who live work and study in the area. A detailed strategy has been drawn up by the estate to achieve net zero carbon by reducing operational and embodied carbon, decarbonising the Energy Centre, constructing highly energy-efficient buildings, procuring renewable energy sources, and offsetting residual emissions. The King’s Cross estate is one of the largest and most successful regeneration projects in the heart of London. The once derelict area has been transformed into one of London’s most vibrant destinations with rejuvenated spaces, a thriving business community and unique cultural scene. 

Jamie Shaw, CEO of Shawton Energy, said: 

"This partnership with King’s Cross is a great example of how forward-thinking real estate portfolios can accelerate their journey to becoming net zero carbon. 
We’re proud to deliver this initiative, which is Shawton Energy’s first Virtual Corporate Power Purchase Agreement and a key milestone that demonstrates our growth and experience working with large businesses in the UK. 
The Point Lane Solar Farm reflects our mission to deliver long-term, low-cost renewable energy for businesses, particularly those in dense city locations where on-site generation isn’t an option. It also highlights the growing corporate demand for long-term, low-cost renewable power as businesses seek to reduce exposure to volatile energy markets and meet decarbonisation targets. 
We’re committed to unlocking access to clean energy at scale, working closely with forward-thinking estates like King’s Cross to decarbonise, cut energy costs, and advance their journey to net zero. This exemplar project will provide a blueprint for other businesses to show what’s possible."

Jamie Quinn, sustainability director at Related Argent, developer of the King’s Cross estate, said: 

"We work tirelessly to ensure King’s Cross is a place that positively impacts people, planet and business. Our partnership with Shawton Energy is a powerful example of how we’re delivering on our environmental commitments through innovation and collaboration, while ensuring value for money for our residents and commercial occupiers. 
By securing 40 per cent of our electricity from a UK solar farm, we’re not only reducing emissions but also setting a blueprint for how urban estates can embrace renewable energy at scale. It’s a major step forward in our journey to net zero carbon."

The deal illustrates how large urban developments can use renewable energy from off-site projects to decarbonise and meet sustainability targets, even without on-site generation options. 

Jamie Shaw, CEO of Shawton Energy, said that the agreement “highlights the growing corporate demand for long-term, low-cost renewable power”, which the company aims to provide even for “those in dense city locations where on-site generation isn’t an option”.

Previously, Shawton Energy has focused on PPAs for commercial rooftop solar deployment, designing, developing, funding and managing rooftop solar PV for its partners. It partnered with the Co-Op group under this model in April this year. In March the company made a similar agreement with the health and wellness club operator, the Bannatyne Group. The installations have already provided “significant” energy savings according to the Bannatyne Group. The installations were made up of 967 panels and 11 inverters across eight sites around the UK.