Statkraft has signed a 15-year power purchase agreement (PPA) with Finnish power company Suomen Voima for output from a wind farm and a hydropower plant in Sweden.
The PPA, effective as of this month, corresponds to an estimated annual volume of 100GWh, produced in the Nedre Bjurfors hydropower plant and the Bjorkhojden wind farm (pictured).
Both plants are owned and operated by Statkraft and are in the Swedish bidding area SE2, making this deal Suomen Voima’s first on Swedish ground.
Nedre Bjurfors hydropower plant commenced operation in 1959 and has a capacity of 78MW as of today.
The plant contains three turbines with gross head of 20 meters and produces roughly 400GWh annually.
Suomen Voima’s share of the annual production is about 50 GWh, half of the PPA’s contracted volume.
Bjorkhojden wind farm will deliver the other half of the PPA’s volume.
The 288MW wind farm started operation in 2015 and consists of 90 Siemens wind turbines, each with a capacity of 3.2MW, and 700 GWh of annual production.
“We are pleased to have concluded this PPA hedging contract with Suomen Voima and are looking forward to 15 years of cooperation”, said Ketil Hovland, senior originator of Statkraft.
The PPA, combining two production technologies, strengthens and diversifies Suomen Voima’s energy portfolio through its versatility and geographical scope.
Pekka Saijonmaa, CEO of Suomen Voima, said: “We’d like to thank Statkraft for the enjoyable and productive collaboration.
“As a result, we have enhanced our geographical diversification in the Nordics by securing our first deal in Sweden, which seamlessly integrates with our existing operations in the Finnish and Norwegian price zones.”