SSE, TotalEnergies unveil new PPA offering for Seagreen offshore project

SSE Renewables, part of UK utility SSE plc (LON:SSE), and France’s TotalEnergies (EPA:TTE) intend to hold tenders to offer corporate power purchase agreements (CPPAs) for the roughly 1.1-GW Seagreen offshore wind farm in Scottish waters.

The first tenders are due to be launched later this year, after the summer, the partners said on Monday. Their new offering through the Seagreen Wind Energy joint venture (JV) will be available to corporate clients willing to buy electricity directly from the offshore wind park in support of their environmental and sustainability targets.

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Unlike traditional corporate PPAs, which are normally signed for 10 years or more, the new model will offer five-year contracts. Business customers will be able to buy power in blocks of blocks of 20MW or 100 GWh per year.

“Seagreen offers an opportunity for large corporates to buy renewable energy that may normally be out of their reach. We are innovating the offshore cPPA model to help energy-intensive businesses to hit net-zero targets with ease and speed,” said Damien McSweeney, finance director for Seagreen Wind Energy.

With a total capacity of 1,075 MW, Seagreen is being built 27 km (16.8 miles) off the Angus Coast in the Firth of Forth and is expected to become operational in 2023. Its 114 turbines will be capable of producing enough electricity for around 1.6 million homes.

SSE Renewables will operate the complex following its commissioning.