Statkraft signs 10-year PPA | Energia Globalna

As Scurf Dyke Solar Farm was project financed, it was important to have a long-term offtake agreement in place so that there was a clear route to market for the energy and REGO. Statkraft has worked with all lenders operating in the UK project finance sector, so the documentation and processes are familiar to banks, investors and advisers. Statkraft AS (rated S&P A) provided a parent company guarantee as requested, as it has done on numerous occasions since the first UK renewable PPA was signed in 2010.

BayWa re acted as EPC to design and build the project, while their Asset Operations division will take responsibility for the operation and maintenance of the facility under a long-term contract. Statkraft and BayWa re have previously agreed PPAs in the UK, on ​​the Dalquhandy wind farm, and in Spain, on both the Tordesillas and Don Rodrigo solar projects.

FP Lux and BayWa re are also building an 8 MW BESS alongside the solar farm, which will be optimised by Statkraft. With the largest portfolios of BESS and renewable PPA optimisations in the UK, Statkraft is well placed to provide offtake solutions for both elements.

This is the latest PPA signed by Statkraft for projects that received a Contract for Difference (CfD) from Allocation Round 4 (AR4). As with other PPAs in Statkraft’s UK portfolio, the generator can set a minimum strike price, which, if not met in the day-ahead capacity auction, will lead to a reduction in asset regulation. This would mean that Scurf Dyke Solar Farm could be shut down by Statkraft to avoid generating power during periods of negative prices.

No AR4 projects will receive a premium under the revised CfD mechanism for any production generated during periods of negative prices. However, Statkraft can manage this risk for generators through its well-established Virtual Power Plant (VPP) system. Statkraft’s VPP has been used effectively for many years to manage a portfolio of renewable PPAs in Germany and elsewhere in Europe, and to optimise a flexible generation portfolio here in the UK.

The Statkraft UK Markets team has been a fixture in the market for many years, having previously signed CfD PPAs for onshore and offshore wind projects since AR1 in 2015 and AR3 in 2019. Since the reintroduction of onshore wind and solar to the CfD auction process, a number of projects have been successfully completed. Statkraft has been in contact with most of the successful parties to explain the various Route to Market for electricity and Renewable Energy Guarantees of Origin (REGO) services it offers, as well as risk management and potential project optimisation.

“Following a competitive tender process, Statkraft was selected as the offtaker for Scurf Dyke. Given the size of the project, the contractors involved and the potential addition of BESS, we were particularly excited to be involved. Given the significant previous experience of the team, once selected we were able to smoothly execute the contracts and meet Scurf Dyke’s deadlines,” said John Puddephatt, PPA Origination Manager at Statkraft. “Signing a PPA with a new customer is always a very positive moment and I look forward to building on this new relationship with re:cap and optimising its renewable assets both in the UK and more widely.”

“We wanted to partner with an offtaker that could offer a renewable PPA as well as route-to-market optimization services for BESS and meet the requirements of our investors and funders. Statkraft also offered competitive commercial terms, could demonstrate prior experience and could secure a PCG from its A-rated parent company,” commented Thomas Seibel, CEO at re:cap Global Investors.

For more news and technical articles on the global renewable energy industry, pick up the latest issue of Energy Global magazine.

Energy Global Summer 2024 Issue

The Summer 2024 issue of Energy Global begins with a guest commentary from Terrawatt on streamlining Italy’s permitting process, then moves on to Frost & Sullivan’s regional report on the Asia-Pacific energy landscape. This issue covers key topics such as wind vessels, offshore wind turbine foundations, weather analysis, solar panel maintenance, and more!

Read the article online at: https://www.energyglobal.com/solar/09072024/statkraft-signs-ten-year-ppa/