Business energy specialist GDF SUEZ Energy UK has agreed a new Power Purchase Agreement (PPA) with Community Windpower to buy all the electricity and green benefits generated by the new Aikengall II wind farm in East Lothian.
GDF SUEZ Energy UK is already the sole offtaker of electricity, ROCs and LECs from Aikengall I, which amounts to 150GWh per year, and buys the 65GWh of electricity generated each year by Community Windpower’s Millour Hill wind farm.
Aikengall II Community Wind Farm will form a major extension to the existing Aikengall wind farm in East Lothian, but will be operated as a separate entity with its own direct connection to the National Grid. Expected to enter operation in the early part of 2016, the wind farm will comprise 19 wind turbines, generating 250GWh of clean, green energy per year – enough to supply more than 42,000 homes. The project is being financed by KfW IPEX-Bank.
Community Windpower signed its first PPA with GDF SUEZ Energy UK in 2009, and secured the latest agreement following a competitive tender process.
Rod Wood, Managing Director at Community Windpower, says: “We have built up a strong working relationship with GDF SUEZ Energy UK over the past few years, based on its attentive service, proactive team, reliable contract administration and market knowledge. The tender process for Aikengall II was essential to ensure the company’s export contracts were still ‘on-market’ and offered the best deal for the output from our newest and largest wind farm.”
“As one of the world’s leading providers of wind energy finance we are once again underlining our structuring expertise in the wind sector with this commitment,” says Thomas Brehler, Global Head of Power, Renewables and Water at KfW IPEX-Bank. “We are pleased to contribute to the production of renewable energy in Scotland and are very happy to have GDF SUEZ as the offtaker of a wind farm operated by Community Windpower, a highly qualified player in the wind energy market in the UK.”
Under the PPA, GDF SUEZ Energy UK will buy the electricity from Aikengall II at an index-linked rate, providing Community Windpower with a market-reflective price for its energy. To provide an assured return on investment for the project’s funders, the PPA also incorporates a floor price, guaranteeing a minimum rate should market prices fall significantly.
In addition, GDF SUEZ Energy UK will purchase all ROC certificates generated by the facility, which help the energy supplier to meet its own sustainable sourcing commitment under the government’s Renewables Obligation.
Paul Roberts Head of Local Portfolio Management, GDF SUEZ Energy UK says “We are extremely pleased to extend our relationship with Community Windpower and to be part of another successful renewable energy project. Our reliability, track record and commitment to customer service helped us win the tender process”
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About GDF SUEZ Energy UK
GDF SUEZ Energy UK is a dedicated business-to-business supplier of energy in the UK. It has been operating in the UK market since 1999 and supplies gas and electricity to all types of business, from small industrial and commercial companies, to energy-intensive industrial plants. It was the first business-to-business supplier to offer flexible electricity purchasing in the UK market more than a decade ago. In addition to supplying energy, it’s a market leader in demand-side services and a growing provider of export contracts and Power Purchase Agreements (PPAs), being one of the few companies who can provide long-term bankable PPAs.
GDF SUEZ Energy UK is part of the ENGIE Group (formerly GDF SUEZ) which has 19 businesses and employs 20,000 people across the energy spectrum in the UK.
ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation, security of supply and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 152,900 people worldwide and achieved revenues of €74.7 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges (GSZ) and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).
About Community Windpower
Community Windpower is at the forefront of wind energy development in the UK with over 800MW built, under construction and in development. As renewable energy specialists, we are fully experienced in the identification, design, development, construction and operation of onshore wind energy projects.
About KfW IPEX-Bank GmbH
Within the KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling KfW’s promotional mission. It is represented in the most important economic and financial centres across the globe.