The renewable energy arm of BayWa has signed a 10-year power purchase agreement with Statkraft covering electricity generated by its 42MW Dalquhandy wind farm in Scotland.
It follows a fixed-price corporate PPA secured last year between BayWa r.e. and telecoms company BT covering 80% of the site’s output.
The deal with Statkraft “enables Dalquhandy to meet its requirements under the CPPA, as well as providing a route-to-market for the remaining 20% of power produced by the wind farm”.
BayWa r.e. UK managing director John Milligan said: “As part of our development and investment in Dalquhandy wind farm, we had a set of specific requirements for this long-term PPA.
“Statkraft, a trusted BayWa r.e. partner, was able to offer competitive terms while also meeting each of these requirements.
“We are delighted to have fully commissioned Dalquhandy to supply our partners with domestically generated renewable energy, as well as contribute to the UK government’s net-zero commitments.”
Dalquhandy is located at a former open cast coal mine in South Lanarkshire and was commissioned earlier this year.
It comprises 10 turbines.
It is in the process of being sold to investor Greencoat UK Wind, with the transaction expected to be completed later this month.
BayWa r.e. and Statkraft are long-term partners and have signed a number of PPA deals, including for the 41.7MW Tordesillas solar project in 2021 as well as the 170MW solar project Don Rodrigo in Spain in 2018.
Statkraft’s UK & Ireland vice president for customer facing business Duncan Dale said: “We are very pleased to have worked with BayWa r.e. on this PPA. They are a developer with a strong track record in the UK.
“Both parties have significant experience and were able to work together in an innovative way to find practical solutions to meet their specific requirements promptly so that the PPA could be agreed ahead of commissioning.
“As the UK market evolves, we are always looking for new ways to support developers and enable investment.”