Statkraft has simultaneously signed a Power Purchase Agreement (PPA) with Gresham House and a Corporate Power Purchase Agreement (CPPA) with Workspace for the Beavor Grange Solar Farm in Devon, England, managed by Gresham House.
The 20MW photovoltaic (PV) site is expected to supply the equivalent power for approximately 6,000 homes or fulfill two-thirds of Workspace's total power demand, as per Statkraft's announcement.
The 10-year agreement, effective from February 2024, entails Workspace receiving as-generated power from the Beavor Grange project and renewable energy guarantees of origin (REGOs) to validate the power source. In addition, Workspace has opted for Statkraft's Firming service, which transforms as-generated power into baseload, allowing seamless integration into the standard supply contract.
Statkraft's Firming service involves purchasing power from the market when the generator is inactive and selling surplus energy during peak production periods, ensuring a consistent electricity supply for the offtaker.
This long-term arrangement provides stability for the generator, instilling confidence in investors and fostering the development of additional renewable energy infrastructure. Simultaneously, it offers budget certainty for Workspace by locking in a fixed price for power over the next decade, a valuable benefit for the offtaker.
Serving as a market integrator, Statkraft initiated the agreement by issuing a request for proposals (RFP) to identify suitable renewable projects seeking a long-term offtaker. The company then facilitated the connection between Beavor Grange and Workspace, aligning the goals of a renewable generator with the sustainability objectives of a corporate entity.
Andy Cooper, Statkraft's Head of Downstream, expressed satisfaction with the collaboration, stating, “This contract is one of a growing number of Firming contracts that Statkraft has signed, and we're anticipating even higher volumes of business in this area during 2024.”
Workspace's Head of Sustainability, Sonal Jain, highlighted the significance of the partnership, stating, “This is by far the most responsible way for businesses to secure a substantial share of clean, green electricity,” aligning with global commitments such as those made at COP28 to triple renewable energy capacity by 2030.
Wayne Cranstone, Investment Director at Gresham House, echoed the sentiment, stating, “We are delighted to have signed another PPA with Statkraft and to have the Corporate PPA with Workspace Group,” emphasizing the importance of securing long-term revenue for solar farm power production.