Ørsted signs corporate PPA for UK offshore wind

The Race Bank offshore wind farm. Source: Ørsted (www.orsted.co.uk).

February 28 (Renewables Now) - UK utility Northumbrian Water Ltd said today it will be buying power from the 573-MW Race Bank offshore wind farm in the UK under a 10-year power purchase agreement (PPA) with Ørsted A/S (CPH:ORSTED).

The corporate PPA, the first of its kind in the UK, is for about 100 GWh per year, or the power generated by 23 MW of capacity at the large wind park. It expands an earlier contract between the two companies, announced in April 2018, through which Northumbrian Water secured renewable electricity for all of its facilities.

“For Ørsted, this agreement is an important step towards building long-term green partnerships with corporate power customers,” said Alana Kühne, head of Corporate PPAs at the Danish energy major.

From the start of March, a third of the water company’s renewable electricity demand will be met by offshore wind power, says today’s press release. Race Bank will supply power for Northumbrian Water consumption sites in the North East, Essex and Suffolk. The company said that, in addition to supporting its sustainable and renewable energy strategy, the deal with Ørsted will also drive down costs of operation through a long-term fixed price for power.

Recently, the Race Bank offshore wind farm off the North Norfolk coast achieved full power. It is powered by 91 Siemens Gamesa 6-MW turbines. Ørsted has a 50% stake in the park, while Macquarie European Infrastructure Fund 5 holds 25%. The other shareholders are Sumitomo Corp (TYO:8053) and Macquarie Capital.

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Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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