Firm duo advises on landmark £300m renewable energy project

Clifford Chance (CC) and DLA Piper have advised on a £300m renewable energy project that will see around 30,000 properties across the UK gaining free solar power.

Newcastle-based clean-tech company Eaga is to use £300m of funding to add solar panels to the social housing properties, with the funding including £75m of equity from Eaga, HSBC Environmental Infrastructure Fund and Barclays European Infrastructure Fund II and £225m of debt from a syndicate of banks.

The transaction is the first to make use of the Government's regulations on feed-in tariffs introduced last year – which mean that energy companies will pay for the electricity provided by residencies with solar panels.

DLA Piper advised Eaga on the project, with Sheffield corporate partner Jon Kenworthy leading a team which also included City finance and projects partner Costanza Russo and Sheffield infrastructure partner Roger Gough.

CC advised the banking syndicate, which includes HSBC, Lloyds, National Australia Bank, Royal Bank of Scotland and Santander. Allen & Overy advised the infrastructure funds.

CC's team was led by London energy and infrastructure partner Jeremy Connick, flanked by tax partners Etienne Wong and Mark Persoff and banking and public sector specialist partner Robert Smith, as well as associates in the firm's regulation and real estate departments.

Connick said: "There should be a lot more of these deals over the next year. Councils should sign up to this scheme as soon as possible if they want what is best for their residents. We found it an especially rewarding project to be involved in as it covers social housing and renewable energy, which are both really important issues."

Kenworthy added: "Given it was a pathfinder project raising significant funds in what remains a difficult credit market, I'm pleased that we have been able to complete the financing."