Statkraft has inked a seven-year power purchase agreement (PPA) with Luminous Energy, covering the output from a 29MW solar farm in the UK, marking a milestone in the integration of renewable energy solutions.
Under the agreement, Statkraft will leverage its market-leading virtual power plant system to manage complex metering arrangements for Luminous Energy's Bracon Ash solar farm in Norfolk. Guy Lavarack, Chief Investment Officer at Luminous Energy, highlighted Statkraft's capabilities, stating that their “virtual power plant system and ability to manage the complex metering arrangements convinced the company it was the best counterparty” for this project.
The solar farm has secured fixed power prices for a significant portion of its output through a Contract for Difference (CfD) from CfD Allocation Round 5 and a virtual corporate PPA with Bristol Airport, a pioneering combination for a single solar project ensuring income stability.
Statkraft's PPA provides differentiated pricing for different portions of the solar farm, offering additional security through physical hedges before financial contracts commence. This flexibility aims to ensure price certainty and potential high returns in volatile market conditions.
Michelle Lam, Statkraft's PPA Business Development Manager, emphasized the company's commitment to innovation in maximizing customer returns: “Finding new solutions to maximise the returns on behalf of our customers is in our DNA at Statkraft. That's why it's been particularly exciting to work with Luminous Energy on this unique PPA.”
Statkraft's expertise in downregulation services further enhances the agreement, enabling responsive management of generation levels to optimize grid stability and operational efficiency.
