Centrica wins balancing contract for 235-MW Swedish wind project

UK energy company Centrica PLC (LON:CNA) said on Thursday it has secured a 10-year contract to provide balancing and power trading sevices for the 235-MW Oeverturingen wind project in Sweden.

The project has been developed by Macquarie Group's (ASX:MQG) Green Investment Group (GIG) and SCA Energy AB (SCA), and will be owned by GIG. It has a 29-year power purchase agreement (PPA) with Norwegian aluminium producer Norsk Hydro ASA.

When announcing its acquisition last month, GIG said the project is expected to be completed by late 2019 or early 2020. The wind complex will consist of 56 Siemens Gamesa turbines of 4.2 MW.

Centrica said its Aalborg, Denmark-based subsidiary Neas Energy will provide all route-to-market services for the wind park, including physical balancing and trading of the power output on the Nordic electricity exchange, as well as the offtake of El-certificates and Guarantees of Origin. The route-to-market services involve the delivery of electricity to Norsk Hydro under the 29-year PPA. The aluminium producer has said it will buy 0.3 TWh a year in 2021-2031 and 0.55 TWh in 2031-2050.

The Oeverturingen wind power plant is expected to produce 0.8 TWh annually.

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