Statkraft has entered into a fixed-price power purchase agreement (PPA) with Boralex for the 106MW Limekiln wind farm, currently under construction in the Scottish Highlands. The project, located south of Reay, is expected to be commissioned by the end of 2024.
Statkraft has offered fixed prices for a portion of the project's power and Renewable Energy Guarantees of Origin (REGOs) in advance of construction completion. Gowling WLG provided legal advice for Statkraft on the PPA.
As part of the agreement, Statkraft has included its conditional bidding service, which allows Limekiln to self-curtail during periods of negative pricing, benefiting both parties by avoiding unnecessary costs and relieving grid pressure. Statkraft's Virtual Power Plant (VPP) system, used effectively in Germany and elsewhere in Europe, will manage this risk and optimize the flexible generation portfolio in the UK.
“With our extensive market experience, Statkraft is well-placed to provide innovative solutions to maximize the gains from our customers' renewable assets,” said Michelle Lam, Statkraft's PPA business development manager. “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.”
Youcef Khelif, Boralex's energy markets director, remarked, “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.”
