Statkraft has signed a fixed-price power purchase agreement (PPA) with Boralex for a 106MW wind farm in Scotland.
The transmission-connected Limekiln wind farm situated in the Scottish Highlands, south of Reay, is under construction and will be commissioned by the end of 2024.
Statkraft has offered fixed prices for a proportion of the project’s power and Renewable Energy Guarantees of Origin (REGOs) in advance of construction being completed.
Gowling WLG acted as legal advisors for Statkraft on this PPA.
As with all other PPAs signed recently, Statkraft has offered its conditional bidding service, enabling Limekiln to self-curtail during periods of negative pricing which is in both parties’ interest.
This helps to avoid unnecessary costs while also relieving pressure on the grid.
Statkraft can manage this risk for generators via its well-established Virtual Power Plant (VPP) system.
Statkraft’s VPP has been used effectively for a number of years to manage our renewables PPA portfolio in Germany and elsewhere in Europe, and to optimise our flexible generation portfolio in the UK.
Statkraft’s PPA business development manager Michelle Lam said: “With our extensive market experience, Statkraft is well-placed to provide innovative solutions to maximise the gains from our customers’ renewable assets.
“I’m pleased we’ve been able to work with Boralex to agree a route-to-market for the power generated at Limekiln Wind Farm, and I hope we can build on this relationship in the future.”
Boralex’s energy markets director Youcef Khelif said: “Statkraft has been a great partner and we have appreciated our positive collaboration throughout the process.
“Limekiln is going from strength to strength and we eagerly anticipate its coming on stream later in the year.”