BayWa's renewable energy division has recently entered into a 10-year power purchase agreement (PPA) with Statkraft, a deal that involves the electricity generated by the Dalquhandy wind farm in Scotland, which has a capacity of 42MW. Last year, BayWa r.e. secured a fixed-price corporate PPA with BT, a telecommunications company, to cover 80% of the wind farm's output.
This agreement with Statkraft allows Dalquhandy to fulfill the requirements of its existing CPPA (Corporate Power Purchase Agreement) while also providing a market pathway for the remaining 20% of power produced by the wind farm. According to John Milligan, the Managing Director of BayWa r.e. UK, the partnership with Statkraft was a result of their specific long-term PPA requirements being met while offering competitive terms.
BayWa r.e. is proud to have successfully commissioned Dalquhandy, which not only supplies domestically generated renewable energy to its partners but also contributes to the UK government's net-zero commitments. The wind farm is situated at a former open cast coal mine in South Lanarkshire and consists of 10 turbines. The sale of Dalquhandy to Greencoat UK Wind, an investor, is currently underway and expected to be finalized later this month.
BayWa r.e. and Statkraft have a longstanding partnership and have previously collaborated on several PPA deals. These include the Tordesillas solar project in 2021, with a capacity of 41.7MW, as well as the Don Rodrigo solar project in Spain in 2018, which has a capacity of 170MW.
Duncan Dale, the UK & Ireland Vice President for Customer Facing Business at Statkraft, expressed satisfaction with the PPA collaboration with BayWa r.e., noting the developer's strong track record in the UK market. Both parties utilized their extensive experience and worked innovatively together to promptly find practical solutions that met their specific requirements, leading to the agreement being reached prior to the wind farm's commissioning. Statkraft remains committed to supporting developers and facilitating investment as the UK market evolves.
