Aura Power and Verdant Energy have merged to create one of the UK’s largest privately backed solar and battery storage independent power producers (IPPs), combining around 1GW of operational and under-construction assets with a development pipeline exceeding 10GW in a transaction backed by infrastructure investor CVC DIF.
The enlarged business will operate under the Aura Power brand following a merger that reflects a broader trend across the European renewable energy sector, where developers are increasingly evolving into long-term owners and operators of renewable generation assets. Alongside the transaction, CVC DIF secured financing from Eiffel Investment Group to support the merger, refinance existing junior debt facilities and provide capital for the next phase of project delivery.
The deal brings together two businesses that have developed complementary strengths over the past decade. Aura Power contributes a substantial pipeline of utility-scale solar photovoltaic (PV) and battery energy storage system (BESS) projects, while Verdant Energy adds an established portfolio of operating and under-construction assets together with project delivery expertise.
Following completion of the merger, the combined platform will comprise approximately 1GW of operational and under-construction solar and battery storage assets across the UK, supported by a development pipeline of around 10GW. The company also intends to continue selectively progressing Aura Power’s battery storage developments elsewhere in Europe.
For Aura Power founder and Chief Executive Simon Coulson, the merger marks a pivotal moment in the company’s development.
“This merger with Verdant Energy, with the backing of CVC DIF, marks a transformative milestone for Aura Power. By combining our extensive development pipeline with Verdant’s robust delivery track-record, we are perfectly positioned to scale our IPP model.”
The enlarged business will employ more than 75 specialists across development, engineering, construction, commercial, legal and finance, creating one of the larger privately backed renewable energy platforms focused on the UK market.
From developer to independent power producer
Founded in 2013, Aura Power has developed more than 2.1GW of solar and battery storage projects to ready-to-build or commercialised status in the UK and international markets. For much of that period, the company worked alongside German renewable energy developer ib vogt, focusing primarily on project development before assets were sold to investors.
In recent years, however, Aura has fundamentally changed its business model.
Rather than exiting projects at the ready-to-build stage, the company has increasingly retained ownership through construction and into operation, joining a growing number of renewable energy developers adopting the independent power producer model.
That transition reached a significant milestone earlier this year with the energisation of Kemble Solar Farm in Gloucestershire, Aura’s first operational solar project.
The development secured a Contract for Difference (CfD), providing long-term revenue certainty, and was constructed by ib vogt under an engineering, procurement and construction (EPC) contract. Grid infrastructure, including a 7km, 33kV cable connection, was delivered by Powersystems UK. Beyond electricity generation, the project incorporates ecological enhancements expected to achieve a 27% Biodiversity Net Gain together with a £20,000 annual community benefit fund.
Aura has also reached financial close on several additional UK solar projects, including Horton Solar Farm in Devon, supported by project finance from Rabobank and Investec. According to the company, nearly 700MWp of its UK solar and battery storage portfolio is expected to become operational by 2028.
Coulson said the merger provides the financial resources needed to accelerate that strategy.
“The deal provides us with both the financial strength and operational expertise to accelerate the delivery of critical solar and battery storage infrastructure, helping the UK meet its ambitious green energy targets.”
Verdant contributes operational scale
While Aura brings an extensive future pipeline, Verdant Energy contributes an operational platform that has grown rapidly since the company was established in 2022.
In just a few years, Verdant has assembled approximately 660MW of utility-scale solar and co-located battery storage assets that are operational or under construction across the UK.
The complementary nature of the two businesses means the merged company now spans the entire project lifecycle—from greenfield development through construction to long-term ownership and operation—creating a platform capable of generating both recurring revenues from operating assets and future growth from its development pipeline.
Institutional capital continues to back renewable energy
The merger also demonstrates continued institutional confidence in renewable energy infrastructure despite more challenging financing conditions across European capital markets.
Alongside completion of the transaction, CVC DIF secured financing from Eiffel Investment Group, which will be used to support the merger, refinance existing junior debt facilities and fund continued development of the combined portfolio.
Eiffel Investment Group has become an increasingly active provider of debt and equity financing for renewable energy and energy transition projects across Europe, supporting developers and infrastructure platforms in multiple markets.
For CVC DIF, the transaction expands an investment originally made through Verdant Energy and creates a business with substantially greater scale.
Caine Bouwmeester, Partner and Head of Renewable Energy at CVC DIF, said the two companies complement each other both strategically and operationally.
“This transaction builds on our original investment in Verdant, bringing together two highly complementary businesses to create a leading UK solar and BESS IPP with the scale, pipeline and delivery capability to generate long-term value.”
Consolidation reflects a changing market
The transaction highlights the changing economics of renewable energy development across Europe.
For many years, developers created projects before selling them to utilities, infrastructure funds or pension investors once planning consent and grid connections had been secured. Increasingly, however, developers are choosing to retain ownership, creating independent power producers capable of generating stable long-term cash flows while building larger integrated businesses.
At the same time, infrastructure investors are showing greater interest in platforms that combine operational assets with substantial development pipelines, allowing capital to be deployed across multiple stages of project delivery rather than through individual asset acquisitions.
With around 11GW of combined operational, construction and development capacity, the enlarged Aura Power becomes one of the UK’s largest privately backed solar and battery storage IPPs. The merger also strengthens its ability to deliver utility-scale renewable generation and energy storage projects that will be needed as Britain continues to decarbonise its electricity system while increasing network flexibility.
Transaction advisers
CVC DIF was advised by Akereos Capital as financial and debt adviser, CMS as legal adviser, TLT on real estate matters, DNV as technical adviser and PwC on financial, tax and structuring matters. Aura Power was advised by Burges Salmon, while Norton Rose Fulbright acted as legal adviser to ib vogt.
