Statkraft signs PPA extension with Sleaford Renewable Energy Plant until 2034
25.06.2020 | news
Sleaford Renewable Energy Plant. Copyright: Greencoat Capital
Statkraft has extended a Power Purchase Agreement (PPA) to continue the offtake of power from Greencoat Capital’s 34MW Sleaford Biomass plant.
Greencoat Capital are one of the largest investors in the UK renewable energy market owning and operating projects in a variety of sectors including onshore wind, solar PV and bioenergy.
Statkraft previously entered into a long-term PPA for Sleaford Renewable Energy Plant with the project’s original owners in 2011. The project became operational in 2014. The original PPA which was set to expire in 2027 has now been extended to 2034 as required by Greencoat and their funders.
The project, located in Lincolnshire, is one of the few biomass projects in the UK that is predominantly straw fuelled.
As part of the project’s financing requirements and Greencoat’s acquisition, Statkraft were pleased to provide an offer to extend the PPA and to continue purchasing all electrical output and other benefits including Renewable Energy Certificate (ROCs) until 2034. As part of this process Statkraft also agreed to extend floor prices until the end of 2032.
Minal Patel at Greencoat said “As part of the acquisition and financing of Sleaford we had specific requirements for the long term PPA. Statkraft were flexible and were able to restructure their existing PPA in order to meet our requirements and to do so within the necessary timescales for the transaction.”
John Puddephatt, Head of Long Term PPA Origination stated “We already have an existing relationship with Greencoat via a number of their onshore wind and solar projects for which we have PPAs in place. We are very pleased to now work with them on this biomass project. The revised commercial terms work well for Greencoat and Statkraft and both parties will also benefit from the introduction of our self-billing system and other PPA updates that will help minimise administration for both sides.”
Notes to editor:
Since 2010 Statkraft have entered into over 230+ long term renewables PPAs in the UK, the majority of which are for 15 years or more and some also include long term floor prices. Once the projects become operational they may change their ownership and funding structures and so some elements of the original PPA become less relevant. Statkraft are always open to a discussion with any generator regarding previously agreed contracts.
We are able to offer PPAs until 2040 and have the flexibility to amend our terms. This may mean introducing or increasing floor prices or extending the duration of the PPAs. Similarly floor prices may no longer be required and so we can offer improved terms to remove or reduce them as we have done on numerous PPAs previously.