Mast Energy Developments targets holiday parks with exclusive Avanti-E joint venture
Mast Energy Developments (MED) has signed heads of terms for an exclusive joint venture with Avanti-E to develop, build and operate on-site power and heat for UK holiday parks. Management sees a clear gap: many of the UK’s c. 4,700 holiday parks want year-round energy security without relying solely on the national grid.
The strategy is to sell electricity and heat directly to parks via private wire power purchase agreements (PPAs) at a lower tariff than retail, with MED earning a fixed margin over the long term. On top of that, sites could earn Capacity Market payments, providing another contracted revenue stream.
What MED and Avanti-E are actually planning
- Exclusive partnership focused on holiday park energy solutions, from development to operations.
- Short-term ambition: c. 25 MW of projects; medium-term plan to scale to 100 MW.
- Discussions already under way with one of the UK’s largest holiday park groups; an initial site of c. 5 MW has been identified.
- This sits alongside MED’s existing strategies: acquiring sites needing limited overhaul, new-builds, and AI data centre power supply.
Avanti-E brings long-standing UK energy development experience. The plan is to sign a binding JV agreement “shortly”. For now, this is a comprehensive heads of terms with exclusivity, not a final contract.
Why holiday parks and private wire PPAs matter
Private wire means power is delivered directly from the generation asset to the customer on-site, rather than via the public grid. That can cut network charges for the buyer and give MED greater pricing control and asset runtime. Adding heat sales strengthens the unit economics by monetising more of the fuel input.
Capacity Market participation can add a predictable base income for availability, smoothing cash flows. In short: two contracted revenue streams (power and heat), plus potential Capacity Market top-up, under long-term PPAs at fixed tariffs and “attractive margin” per MED.
How this fits MED’s 300+ MW goal
Management wants a diversified portfolio exceeding 300 MW. Holiday parks could become a steady, customer-led vertical that complements merchant or flexibility-led projects. If MED secures anchor agreements with a major holiday park operator, the route to 25 MW then 100 MW looks more repeatable, site by site.
The near-term test is execution speed. Heads of terms need to become binding contracts, PPAs need signing, and the first 5 MW site should reach a final investment decision and build-out on a clear timetable.
Warrants exercised: more shares in issue, modest cash inflow
Alongside the JV news, MED confirmed warrant exercises totalling 6,832,000 new shares. This includes 4,957,000 Prepaid Warrants and 1,875,000 Cash Warrants exercised at 4 pence per share.
The Cash Warrant exercise brings in cash proceeds of approximately £75,000. Prepaid Warrant exercises do not add new cash today.
| Item | Detail |
|---|---|
| New shares issued | 6,832,000 |
| Admission timing | Expected 8.00 a.m. on 11 September 2025 |
| Total shares after Admission | 23,735,927 |
| Cash Warrants exercised | 1,875,000 at 4 pence per share |
| Cash proceeds | c. £75,000 |
| Prepaid Warrants exercised | 4,957,000 |
Share count impact and major holders
Post-Admission, MED’s issued share capital will be 23,735,927 shares with voting rights. By inference, the pre-Admission base was about 16,903,927 shares, so the latest issue increases the share count by roughly 40%. For existing holders, that equates to around 29% dilution of percentage ownership.
Reflecting that, disclosed holdings shift as follows:
- Paul Venter, Chair: from 11.59% to 8.25%.
- RiverFort Global Opportunities PCC Ltd: from 10.09% to 7.18%.
What’s positive in this RNS
- Clear customer problem to solve: energy security for thousands of UK holiday parks.
- Contract-led revenues: private wire PPA for power and heat at a fixed tariff plus potential Capacity Market payments.
- Early commercial traction claimed: discussions with a large holiday park developer and a first c. 5 MW site identified.
- Strategic fit: complements existing plans and supports the 300+ MW ambition.
What’s missing or still to prove
- Heads of terms only: definitive JV agreement, commercial terms and ownership split are not disclosed.
- Economics: capex per MW, target returns, PPA duration, tariff levels, and heat offtake details are not disclosed.
- Funding plan: how projects will be financed is not disclosed. Today’s cash from warrants is small relative to build costs.
- Delivery risk: the first c. 5 MW site is “identified” but not yet contracted; timelines to financial close and construction are not provided.
- Technology and fuel: the RNS does not state the generation technology or fuel source, which will matter for permitting, margins and ESG.
Key numbers at a glance
| Metric | Figure |
|---|---|
| Holiday parks in the UK | c. 4,700 |
| JV initial target | c. 25 MW |
| JV medium-term scale | 100 MW |
| First site identified | c. 5 MW |
| Group portfolio ambition | 300+ MW |
Josh’s take
This is a sensible pivot into a niche with real customer pain points. If MED lands a master agreement with a major holiday park operator, replication across sites could be relatively swift, with contracted revenues and potential Capacity Market upside. That’s attractive versus purely merchant peaking assets.
However, the devil is in the details we don’t yet have: project economics, funding, and contract terms. The share count jumps meaningfully while bringing in only c. £75,000 of cash today, so further funding steps are likely if MED wants to build at pace.
What to watch next
- Signing of the binding JV agreement with Avanti-E and disclosure of JV economics.
- PPA execution with the named holiday park operator and confirmation of the first c. 5 MW project timeline.
- Capacity Market pre-qualification results for applicable assets.
- Project capex, funding structure and any non-dilutive options.
- Clarity on technology, fuel source and the heat solution offered to parks.
Bottom line
MED’s exclusive JV for holiday park power and heat is strategically coherent and potentially scalable, with the allure of contracted cash flows. It is early days and investors will want binding contracts, funding clarity and a visible build schedule. Deliver those, and this new vertical could become a meaningful contributor to MED’s 300+ MW ambition.
