Macquarie Acquires Full Ownership Of Island Green Power

In a major move to boost the United Kingdom's clean energy ambitions, Macquarie Asset Management (MAM) has acquired the remaining 50% stake in Island Green Power, a leading UK-based solar energy developer. With this acquisition, MAM now has full ownership of Island Green Power through its managed funds, marking a big milestone in the company's long-term commitment to the nation's renewable infrastructure space.

Macquarie first acquired a stake in Island Green Power in 2022. This new deal not only further strengthens its UK renewable energy commitment but also marks a strategic shift for Island Green Power. Formerly dedicated to developing renewable energy projects, Island Green Power is now evolving into an Independent Power Producer (IPP). This change signifies the firm will no longer be engaged in project development only but also be developing, owning, and operating solar and battery energy facilities. Such an action represents a wider industry movement wherein developers are transforming into IPPs in order to acquire more stable and longer-term cash flows.

Island Green Power, established in 2013, has already made its presence felt by having developed more than 3 gigawatts (GW) of build-ready solar projects. It has recently received planning permission for two of the UK's largest solar farms — the 600 megawatt (MW) AC Cottam Solar Farm and the 480 MW AC West Burton Solar Farm. These developments, along with its large pipeline, make Island Green Power an essential part of the UK's shift towards renewable energy.

Today, Island Green Power's UK development pipeline comprises over 15 GW of utility-scale solar and battery energy storage system (BESS) projects. This substantial pipeline is well in line with the UK Government's Clean Power 2030 Action Plan, which aims for the addition of 45 to 47 GW of new solar capacity by 2030. The overall aim is to decarbonise the nation's electricity system completely by 2035. Island Green Power's evolution into an IPP and its takeover by Macquarie puts it well placed to make a significant contribution to these national goals.

Eric Bjonerud, MD of MAM Green Investments, welcomed the acquisition, highlighting the strong development potential of Island Green Power. He pointed out that the company enjoys a sound position and will continue to scale its operations further over the next several years. "We look forward to boosting our holding in UK solar leader Island Green Power.". We have witnessed firsthand Island Green Power’s strong development capabilities… This will serve as a solid foundation for building a significant operating base over the coming years,” Bjonerud said.

While Macquarie has assumed complete ownership of Island Green Power's UK business, the company's global operations will remain in the hands of its founders and continue to be owned and operated by them. This will see the global branch of Island Green Power maintain its autonomy while giving the UK business access to the financial muscle and strategic guidance of Macquarie.

Island Green Power's co-founder, Ian Lawrie, said he was proud of what the company had achieved and optimistic about its future under Macquarie ownership. "We're incredibly proud of what the Island Green Power team has done in establishing one of the UK's leading renewable energy platforms," Lawrie said. "As the business embarks on its next phase with Macquarie, I have every confidence in the team's ongoing success.

Macquarie's acquisition is part of a wider commitment to investing in UK infrastructure. In the last 20 years, Macquarie has invested over £60 billion in UK infrastructure. The company is currently backing over £20 billion of committed investment across energy, transport, utilities, and digital infrastructure sectors.

The deal is a clear indicator of the traction that is being gained in the UK for clean energy and the growing significance of private sector financing in meeting national climate objectives. As Island Green Power gets ready to take this next step, its enhanced role as an IPP — in addition to Macquarie's financial resources and strategic influence — makes it a critical driver of bringing the next generation of solar and battery storage infrastructure nationwide.