Qair UK is currently negotiating debt financing for three consented solar projects totalling circa 150 MW expected to enter construction this autumn, COO Liam Kelly told NPM in a recent interview.

Each 44 MW, 45 MW, and 65 MW in size, the solar projects are expected online in late 2026.

Qair UK hopes to secure GBP 65–75m in debt to back the projects, which have a total expected capex of GBP 85–100m.

It aims to achieve financial close on the deal before August, ahead of construction start.

The IPP is pursuing multiple sources of revenue for the solar portfolio, including CfD tariffs and PPAs.

Kelly noted ongoing negotiations for the 44 MW solar project, located in the Midlands, with Qair UK hoping to close the deal by August.

According to Kelly, a good PPA price to secure for UK projects would be around GBP 80 / MWh, non-index linked, for a 10-year period. “We’d be happy with that,” said Kelly.

The IPP also plans to submit the consented projects into allocation round 7 (AR7) of the UK’s CfD scheme.

Kelly highlighted that its possible for Qair UK to have started its search for financing ahead of securing revenue as the UK market is quite “relaxed” with regards to off-takers.

He elaborated, saying: “You will find one. It’s not like in other markets where they won’t even begin discussion about financing a project until you’ve got an off-taker. It’s generally considered that you will get one, and we can begin conversations with the banks ahead of that.”

The 150 MW solar portfolio comprise part of Qair UK’s wider development pipeline, which stands at just over 4 GW, including 400 MW of solar, 24 MW of wind, and 1 GW of BESS that have been submitted for planning consent.

Kelly was unable to offer an estimation on when decisions might be received, remarking that uncertainty and delays were down to the present lack of knowledge and resources within local authorities making these decisions.

“It’s got to a point with local authorities that to guess has just become stupid,” Kelly said. “Ten years of austerity and cut backs has meant that local authorities have absolutely no resources…and even if they are well resourced, competency is still an issue.”

While the current UK government has instituted favourable planning policy, Kelly said that NIMBY-ism and the other impacts caused by a limited demographic of decision-makers is hindering progress.

“The technology is there, the decisions are clear, [but] nobody wants to make the decisions,” said Kelly.

Meanwhile, Kelly’s outlook on UK grid is more positive, particularly in light of the ongoing reform process.

“I could not be happier,” said Kelly. “I have wanted this to happen for 10 years.”

His enthusiasm stems primarily from the expectation that the reform process will remove “zombie projects” that hold up the connection queue while their development fails to progress.

“I am, always have been, and will always be a responsible developer,” Kelly said. “It is [Qair’s] intention to get consent for [our] projects, it is our intention to move forward with these projects.

“The only reason we have [ever not] moved forward with a project is the uncertainty created by government, by the market, it’s not by us; It’s political meddling and financial short-sightedness that creates uncertainty, not the developers.”

An example Kelly noted in this regard, is the continuing lack of wind development in England, while projects proceed in Scotland and Wales, due to strong political uncertainty. In particular he pointed out that wind has long development timelines that exceed political cycles, which means that development could begin under a favourable government but be faced with an unfavourable one once it comes time to submit for consent.

With regards to financial markets, he noted uncertainty stemming from the impact of oil prices on renewables prices, as well as geopolitical situations.

The history of Qair UK

Qair has been active in the UK since 2022, and subsequently secured 2 GW of offshore wind capacity in Scotland in the ScotWind leasing round, two energy-from-waste projects, and a sizeable onshore wind and PV pipeline.

Last August, the Paris-headquartered renewables group announced the acquisition of UK-based developer Green Switch Capital. Qair acquired around 90% of the business.

Currently the UK business has no operating projects, meaning the solar projects currently being financed will be the first.

Anticipating a three-year development timeline for projects from submission to ready-to-build – including about 12 months to achieve consent, another 12 to discharge conditions, and then six to 12 months to close financing – Kelly said all 4.2 GW of Qair’s UK pipeline could be online by 2030, if financial markets allow.

Globally, Qair aims to have 3 GW of assets operating by 2027, having surpassed 1 GW in 2023.