Statkraft, a leading European provider of renewable energy and market optimization solutions, has entered into a fixed-price power purchase agreement (PPA) with Boralex for the Limekiln Wind Farm.
This 106 MW onshore wind farm, connected to the transmission grid, is located in the Scottish Highlands, south of Reay.
Clean Energy for 100,000 Homes
The Limekiln Wind Farm, currently under construction, is projected to be operational by the end of 2024. Upon completion, it is expected to generate sufficient clean energy to power approximately 100,000 homes.
Leveraging Market Expertise
With over a decade of experience in structuring route-to-market PPAs, Statkraft has leveraged its extensive knowledge and expertise to provide Boralex with an attractive PPA framework.
This includes offering fixed prices for a portion of the project’s power and Renewable Energy Guarantees of Origin (REGOs) even before construction is finalized. Gowling WLG served as Statkraft’s legal advisors for this PPA.
Innovative Solutions for Risk Mitigation
As with its recent PPAs, Statkraft has included its conditional bidding service, allowing Limekiln to self-curtail during periods of negative pricing, which benefits both parties. This approach helps avoid unnecessary costs and alleviates pressure on the grid.
Statkraft effectively manages this risk for generators through its well-established Virtual Power Plant (VPP) system. The VPP has been successfully utilized for years to manage Statkraft’s renewables PPA portfolio in Germany and other European regions, as well as to optimize its flexible generation portfolio in the UK.
Positive Collaboration and Future Outlook
Michelle Lam, Statkraft’s PPA Business Development Manager, commented, “Leveraging our extensive market experience, Statkraft is well-positioned to deliver innovative solutions that maximize returns from our customers’ renewable assets.
We are pleased to have partnered with Boralex to secure a route-to-market for the power generated at Limekiln Wind Farm and look forward to building on this relationship in the future.”
Youcef Khelif, Energy Markets Director of Boralex, added, “We are delighted to have secured this PPA for Limekiln, enhancing project certainty by providing a stable revenue stream during the initial years of operation before the CfD takes effect. Statkraft has been an excellent partner, and we value our positive collaboration throughout this process. Limekiln is gaining momentum, and we eagerly anticipate its upcoming commissioning later this year.”