Renewable energy generator Statkraft has signed a ten-year Power Purchase Agreement (PPA) with international investor FP Lux Group, advised by re:cap Global Investors ag. This agreement includes the 80.6MW Scurf Dyke Solar Farm – one of the UK’s largest – and an adjacent 8MW battery energy storage system (BESS) near Driffield in East Riding of Yorkshire.
The Scurf Dyke solar farm was project funded, so it was essential to provide a clear route to market for the energy generated and Renewable Energy Guarantees of Origin (REGOs). Statkraft is an old hand in the project finance industry, having signed the UK’s first renewable energy PPA in 2010. partners more comfort.
BayWa re is responsible for the development and construction of the project and will be responsible for its long-term operation and maintenance. This collaboration is a continuation of a long-standing partnership between Statkraft and BayWa. Statkraft’s role includes the optimization of the 8MW BESS and offtake solutions for both project elements.
John Puddephatt, Statkraft’s PPA Origination Manager, commented: “Following a competitive tender process, Statkraft was selected as the off-taker for Scurf Dyke. Given the size of the project, the counterparties involved and the possible addition of a BESS, we were particularly excited to be involved.
“Signing a PPA with a new client is always a very positive moment, and I hope we can build on this new relationship as we re:cap and optimize its sustainable assets both in the UK and more broadly.”
Thomas Seibel, CEO of re:cap Global Investors, said: “We were keen to work with an buyer who could offer a renewable energy PPA and route-to-market optimization services for BESS, meeting the requirements of our investors and financiers could meet. Statkraft also offered competitive commercial terms, was able to demonstrate previous experience and was able to supply an A-rated PCG from their parent company.”
This PPA is the latest signed by Statkraft and concerns projects from Allocation Round 4 (AR4) of the Contracts for Difference (CfD) program. The agreement includes mechanisms to manage risks during negative price periods using Statkraft’s proven Virtual Power Plant (VPP) system.
Statkraft has been very active in the UK recently, signing a unique solar PPA with Luminous Energy earlier this month and building Ireland’s first four-hour battery storage project.
