Minesto AB has announced an update and renewal of its tidal power purchase agreement (PPA) with Faroese electric utility Sev, as disclosed on Monday. The revised agreement entails adjustments to the electricity price-level and an extension of the contract term by two additional years.
The Swedish marine energy developer initially signed the PPA with Sev in early 2020, encompassing up to 2.2 MW of installed tidal power generating capacity.
Under the new contract, the pricing structure has been revised to reflect the total system value of tidal energy within the future energy mix of the Faroe Islands, aiming to achieve 100% renewable energy by 2030. The amended PPA now covers the capacity of Minesto's three tidal power plants in Vestmanna, the company confirmed.
Dr Martin Edlund, CEO of Minesto, highlighted the significance of the updated agreement, stating, “The updated PPA is on a price-level that underlines the value of tidal energy in energy mix in the Faroe Islands.”
In February 2024, Minesto outlined a scaled-up roadmap for a 200-MW tidal energy buildout in the Faroe Islands in response to escalating demands for renewable energy.
