Orsted has signed an agreement with Northumbrian Water enabling the 573MW Race Bank offshore wind farm to supply 30% of the UK water company’s renewable energy demand.
The 10-year deal, which starts on 1 March, is the first power purchase agreement (PPA) of its kind in the UK, according to Orsted.
The corporate PPA expands on a renewable electricity supply agreement between the companies, which started in April 2018.
The move further drives Northumbrian Water’s sustainable and renewable energy strategy, building upon its existing solar, hydro, gas to grid and advanced anaerobic digestion power generation.
Under the deal’s terms, Northumbrian Water will receive approximately 100 gigawatt hours of electricity annually from Race Bank, off the Norfolk coast, for its operations in north-east England, Essex and Suffolk.
The PPA will help drive down Northumbrian Water’s costs of operation through a long-term fixed price for electricity.
Northumbrian Water group commercial director Graham Southall said: “This PPA is not only a first of its kind in the UK; more importantly it aligns perfectly with our sustainability goals and our ambitions of creating a truly cohesive energy management strategy.
“The long-term stability this brings is fantastic for us, and great news for our customers and stakeholders, because it reduces operational costs without compromising our work.”
Under the agreement Orsted will also provide an innovative balancing service of the wind output so that the electricity can be delivered to Northumbrian Water under their existing supply agreement.
Race Bank offshore wind farm is one of the newest operational wind farms in the UK with commissioning being achieved last year and comprises 91 Siemens Gamesa 6MW wind turbines.