Flexible power generation solutions provider Mast Energy Developments plc (MED) (LON:MAST) revealed on Tuesday that it has signed heads of terms for an exclusive joint venture with Avanti-E Ltd (Avanti), a developer of power projects in the UK.

The jointly owned business is intended to develop, build, and operate power supply solutions for holiday parks across the UK.

This agreement positions Mast as an early entrant in a market of approximately 4,700 holiday parks, many of which require reliable energy outside the national grid.

Under the plans, the joint venture will provide holiday parks with secure power and heat via private wire power purchase agreements at tariffs below retail market levels. For Mast, the model offers two income streams -- power and heat -- through long-term contracts with fixed margins, while also allowing participation in the Capacity Market for additional revenues.

The partnership aims to deliver around 25 MW of projects in the short term, scaling to 100 MW in the medium term. Discussions are underway with one of the UK's largest holiday park developers, with an initial 5 MW site already identified.

This strategy complements Mast's existing focus on acquiring sites needing upgrades, new-build projects, and power supply for AI data centres, supporting its target of a 300+ MW portfolio.

A binding definitive joint venture agreement with Avanti is expected soon.