Thurrock Council sells failed solar farm project for £700m

The council lent £655m to Rockfire/Toucan for investments in solar farms

A bankrupt council has sold its portfolio of 53 solar farms for £700m as it battles to repay its debts.

Thurrock Council, in Essex, was left with debts of about £1.4bn after a series of failed investments in the farms.

The local authority said it could now pump hundreds of millions of pounds into tackling its financial crisis.

Its Conservative leader, Andrew Jefferies, said he was committed to recovering the situation.

Toucan Energy Holdings, of which Thurrock Council was the primary creditor, entered administration in November 2022.

Its solar portfolio was acquired by Schroders Greencoat "at a sale price of circa £700m" on Thursday, the council said.

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A spokesman said the sale would reduce Thurrock's debt position "by in excess of £500m" and added the money would be "the single biggest contributor towards the council's financial recovery".

In 2023, Thurrock Council increased the tax it collects from residents by 9.99%

Graham Snell, councillor in charge of finance, said he was working to "right the wrongs that have taken place in the past".

"There is much more for Thurrock Council to do as we seek to build on this to ensure we return the council to a financially sustainable position as soon as possible and continue to reduce the council's overall debt along the way," he said.

Mr Jeffries added: "While it is good news that this asset has now been sold, there is no denying the scale of the challenge we face and the ongoing efforts that are required to stabilise the council in the years ahead."