Statkraft signs solar PPA with Luminous Energy

Luminous Energy has successfully secured fixed energy prices for almost all of Bracon Ash Solar Farm’s production via two independent sources – a Contract for Difference (CfD) from Round 5 of the CfD Allocation and a Virtual Corporate PPA with Bristol Airport.

It is believed to be one of the first projects to combine these two financial instruments for a single solar farm, guaranteeing a steady income for the majority of its production. Statkraft’s flexibility and ability to handle more complex pricing and settlements were key to the success of signing this PPA.

In addition to providing balancing services, Statkraft’s PPA includes different prices for the two parts of the solar farm and provides additional security by offering physical security prior to the start of financial contracts. This optionality allows for further price certainty and the potential to secure high prices in the period immediately preceding the start of other contracts.

Statkraft’s downregulation service is an important benefit for Luminous Energy under this PPA. By responding to the price trigger set by Luminous Energy and limiting the project remotely, Statkraft will prevent Bracon Ash from generating power during periods of negative prices and incurring unnecessary costs, while also relieving the grid.

Statkraft can manage this risk for generators through its well-established Virtual Power Plant (VPP) system. Statkraft’s VPP has been used successfully for many years to manage our renewable energy PPA portfolio in Germany and other European countries and to optimise our flexible generation portfolio 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.

“Finding new solutions to maximize profits for our customers is in our DNA at Statkraft. That’s why it was particularly exciting to work with Luminous Energy on this unique PPA,” said Michelle Lam, PPA Business Development Manager at Statkraft. “Statkraft has once again demonstrated its innovative approach and willingness to think creatively on behalf of our customers to meet their requirements and optimize the options available in the market.”

“We are pleased to sign a long-term power purchase agreement with Statkraft. Their market leadership, virtual power plant system and ability to manage complex metering arrangements convinced us that they were the best contractor to appoint for our first operational solar farm,” added Guy Lavarack, Chief Investment Officer of Luminous Energy.

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Read the article online at: https://www.energyglobal.com/solar/05072024/statkraft-signs-solar-ppa-with-luminous-energy/