October 8 (Renewables Now) - Some of the UK's largest universities will be sourcing their electricity from wind power under a GBP-50-million (USD 61.5m/EUR 56m) deal with Norwegian utility Statkraft AS.
The aggregated power purchase agreement (PPA) was signed by 20 universities and has a 10-year term, Newcastle University, which is taking part in the consortium, said on Monday. The deal was arranged by renewables supplier Squeaky Clean Energy in partnership with not-for-profit organisation The Energy Consortium (TEC).
Other universities on the list include the University of Exeter and the Aberystwyth University.
The electricity covered in the contract will be supplied from Statkraft’s local wind portfolio and will come with Renewable Energy Guarantees of Origin (REGOs). Buying the power at a fixed price will help the universities lower their exposure to market volatility and cut their electricity bills, together with their carbon footprint.
Richard Murphy, managing director at TEC, said that the deal indicates how the PPA market, once reserved only for large corporations, could be opened for smaller entities. “By acting together in a collaborative approach facilitated by the energy expertise here at TEC, these institutions, whether large or small, have been able to navigate a previously inaccessible market,” he added.
(GBP 1.0 = USD 1.229/EUR 1.120)