March 1, 2019 Read More →

Ørsted, Northumbrian Water sign first-of-a-kind offshore wind power deal in U.K.

BusinessGreen:

Ørsted has struck a long-term deal to sell almost a third of the electricity produced by its Race Bank offshore wind project directly to Northumbrian Water, in what the Danish renewables giant has hailed as the first Power Purchase Agreement (PPA) of its kind in the UK.

The 10-year corporate PPA, announced today, marks the first direct supply deal between a business and a UK offshore wind farm. It will see Northumbrian Water source around 100MW of electricity each year directly from the wind farm, providing a customer for roughly 30 per cent of the site’s overall expected output.

Currently under commissioning off the Norfolk coast, the wind farm is capable of generating up to 573MW of power from 91 Siemens Gamesa 6MW turbines, according to Ørsted.

The deal, which commences from the start of next month, is an expansion of an existing renewable electricity supply agreement between the two companies which started in April last year. Ørsted explained it would also provide an “innovative balancing service” for the wind power output from the project so that the electricity can be delivered to Northumbrian Water under the existing supply agreement.

Northumbrian Water supplies around 2.7 million customers in the North East of England with both water and sewerage services, as well as supplying another 1.8 million customers in the South East with water services under the trading name Essex & Suffolk Water. Graham Southall, Northumbrian Water’s group commercial director, said the PPA deal would drive down the water supplier’s operating costs by offering a fixed price for electricity, while also increasing its renewable energy use.

More: Ørsted strikes UK’s first offshore wind PPA deal with Northumbrian Water

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