Business energy specialist GDF SUEZ Energy UK has been awarded two new power purchase agreements (PPAs) – one by BWSC East Anglia Limited (formerly ICENI Energy) and one by Templeborough Biomass Power Plant Limited (formerly Brite Partnership (North East) Limited).
The first agreement is to buy electricity generated by the Snetterton biomass plant in Norfolk when it opens in late 2016. Operated by BWSC East Anglia Limited, and backed by 100% funding from CI (Copenhagen Infrastructure) and Burmeister & Wain Scandinavian Contractor (BWSC), the 44.2MW renewable energy facility will generate electricity by burning primarily straw.
GDF SUEZ Energy UK will buy all of the 350GWh of electricity exported to National Grid from the Snetterton plant each year. That’s enough to meet the annual needs of up to 68,000 homes.
On the back of this contract, Templeborough Biomass Power Plant Limited, which is wholly owned and funded by CI, awarded GDF SUEZ Energy UK an identical PPA for the new Templeborough (formerly named Brite) biomass plant in Rotherham. Expected to be commissioned in March 2017, this 39.3MW plant will burn waste wood to generate 315GWh of electricity each year – all of which will be purchased by GDF SUEZ Energy UK.
BWSC East Anglia Limited and Templeborough Biomass Power Plant Limited have agreed 15-year PPAs with GDF SUEZ Energy UK for both plants, providing long-term assurances of a regular income. GDF SUEZ Energy UK will buy the output from Snetterton and Templeborough at an index-linked rate, providing a market-reflective price for every kWh of electricity generated. To provide an assured return on investment, the PPAs also include a floor price, guaranteeing a minimum rate for the output from both plants.
Power Purchase Agreements are essential to the viability of any new renewable energy plant. Funders of these major infrastructure projects need concrete assurances that the money they invest will be repaid through the sale of energy to a reliable, experienced and credit-worthy offtaker. GDF SUEZ Energy UK has built up a strong reputation as a leading player in the power purchasing arena, having secured agreements with several major renewable energy plants in recent years.
Paul Roberts, Head of Local Portfolio Management at GDF SUEZ Energy UK, says: “These new agreements are the first PPAs we have secured for biomass plants, having previously focused on wind power and energy-from-waste technologies. It demonstrates the flexibility of our PPAs, which present an attractive and secure proposition for any type of renewable energy plant.”
Rúni Bro Róin, Senior Partner at CI, says: “We’re pleased to have found the basis for cooperation with a strong and reputable partner like GDF SUEZ, which will be the sole purchaser of energy from both Snetterton and Templeborough”
GDF SUEZ Energy UK will also purchase all ROC and LEC certificates received by the two plants, which will help the energy supplier to meet its own sustainable sourcing commitments under the government’s Renewables Obligation.
NOTES TO EDITORS
The Snetterton biomass plant will bring significant benefits to the local economy in Norfolk. As well as providing a number of jobs associated directly with the plant, it will generate an annual investment of around £9 million in the agricultural economy through contracts for the supply of around 240,000 tonnes of straw per year.
Templeborough Biomass Power Plant in Rotherham will use 270,000 tonnes of waste wood each year to generate its environmentally friendly energy. The plant is being constructed on a brownfield site, and is expected to create a large number of new jobs. It will generate enough electricity to power approximately 40% of the households in Rotherham.
About GDF SUEZ Energy UK
GDF SUEZ Energy UK is a dedicated business-to business supplier of energy in the UK and is part of GDF SUEZ Energy UK-Turkey region. 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 GDF SUEZ Group which has 19 businesses and employs 19,000 people across the energy spectrum in UK.
About GDF SUEZ
GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services. GDF SUEZ employs 152,900 people worldwide and achieved revenues of EUR 74.7 billion in 2014. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone, Euronext Vigeo Eurozone 120, Vigeo World 120, Vigeo Europe 120 and Vigeo France 20.