March 7 (Renewables Now) - Swedish wind project developer Eolus Vind AB (STO:EOLU-B) said today it has signed a power purchase agreement (PPA) for its 330-MW Oyfjellet wind project in Norway with Alcoa Norway ANS.
The local business of US aluminium producer Alcoa Corp (NYSE:AA) will buy the wind farm's entire output over the 15-year duration of the contract to provide its plant in nearby Mosjoen with locally generated electricity. The wind facility, scheduled for commissioning in 2021, is expected to produce 1.2 TWh a year.
Eolus said the long-term PPA will enable it to start construction of the wind farm this year. The company added it can now also offer investors "an interesting investment opportunity in the Nordic market," backed with a long-term PPA.
"Oyfjellet is a prime location for wind power and we are very happy to be able to construct the 330 MW wind farm and offer it to investors with this PPA signed with Alcoa," said Eolus chief executive Per Witalisson.
The commissioning of the wind farm in 2021 will see it qualify for electricity certificates within the common Norwegian and Swedish system. Eolus said that as part of the deal it has signed a EUR-256-million (USD 318m) power purchase guarantee with the Norwegian Export Credit Guarantee Agency (GIEK).
The project secured a final permit from the Norwegian Ministry of Petroleum and Energy (OED) in November 2016.
(EUR 1 = USD 1.242)