Iberdrola-owned Avangrid and Statkraft have signed a virtual power purchase agreement (vPPA), establishing a new relationship between the two companies in the United States.
Statkraft will receive Renewable Energy Certificates (RECs) from Avangrid’s 300MW Streator Cayuga Ridge South Wind Farm in Illinois with this short term vPPA.
This is the first agreement between the two companies in the US market.
Statkraft and Iberdrola have a power PPA in place for energy produced at Iberdrola’s Korytnica 2 wind farm in Poland.
Avangrid chief executive Pedro Azagra said: “We are grateful to partner with organisations like Statkraft that share our commitment to accelerating a clean energy transition.
“Climate change is a defining issue of our time and it is vital that we work together to meet the moment.
“Agreements like this are a good example of our active approach to managing merchant risk at Avangrid’s existing renewable energy facilities, while ensuring clean energy continues to flow to the communities where it’s needed most.”
Head of Statkraft US Patrick Pfeiffer added: “This VPPA marks a significant milestone in the establishment and expansion of our PPA business in the United States.
“We are proud to partner with Avangrid as a continuation of our successful relationship with Iberdrola in Europe.
“As we work toward a global energy transition, it is critical to think beyond borders and connect internationally.
“Together with our valued partners, we can renew the way the world is powered.”
With more than 8.7GW of installed capacity, Avangrid is one of the largest renewable energy operators in the US.