BayWa renewable energy arm has signed a virtual power purchase agreement with BT for electricity produced by the 42MW Dalquhandy onshore wind farm in Scotland.
The 10-year fixed price agreement will see the telecoms company purchase 80% of the scheme’s output, expected to be around 90GWh annually.
Dalquhandy is a ten-turbine project currently in construction in South Lanarkshire that is expected to be commissioned before the end of this year.
It will feature Vestas V136 turbines.
The deal was signed in June, prior to the submission deadline for the latest Contracts for Difference round, and marks the second corporate PPA between BayWa r.e and BT following a 2014 agreement for the 30MW Stroupster wind farm in the Scottish Highlands.
BayWa r.e UK managing director John Milligan said: “Through this corporate VPPA, BT Group has secured a long-term source of renewable energy in an increasingly volatile energy market.
“This represents an excellent outcome for the Dalquhandy project with a reputable long term offtaker.
“We are pleased to help BT Group meet its renewable electricity commitments and look forward to bringing the site online towards the end of the year.”
BT Group chief procurement officer Cyril Pourrat added: “As one of the largest private purchasers of electricity in the UK, today’s announcement underpins our commitment to use 100 % renewable electricity worldwide where markets allow and sends a clear signal to the market that renewable energy is a key enabler to reach net zero by 2050 in the UK.”