Statkraft expands relationship with Infinis by signing two further power purchase agreements
The sites are the first where output will be actively managed to avoid generating in any periods where the day-ahead power price is negative
Statkraft, the UK’s leading renewables trader, has announced the signing of two seven-year power purchase agreement (PPA) contracts with Infinis, a leading low-carbon generator in the UK covering solar farms in Bishampton, Worcestershire and Litchardon, Devon.
These are the first PPAs that Statkraft has signed for projects that received Contracts for Difference (CfD) in Allocation Round 4 (AR4). The two sites, with an installed capacity of 92MW, are also the first in Statkraft’s UK portfolio where output will be actively managed to avoid generating in any periods where the day-ahead power price is negative.
Projects awarded CfD in AR4 will not receive CfD top-ups for any output generated during a negative price period. Statkraft manages this risk for generators via Unity, its well-established Virtual Power Plant (VPP) system. Statkraft’s VPP has been used effectively for several years to manage its renewables PPA portfolio in Germany and Europe, and to optimise flexible generation in the UK.
Statkraft’s UK team initiated project discussions with Infinis in advance of AR4 and provided detailed indicative terms to help Infinis model operational expenditure accurately ahead of CfD auction submissions. Statkraft’s UK Markets team has extensive experience for CfD PPAs, having provided PPAs for AR1, AR3 and now AR4 for wind and solar.
John Puddephatt, Statkraft’s PPA Origination Manager, said: “These two PPAs represent the latest contracts in our long-standing relationship with Infinis, which includes us currently optimising almost 30 flexible generation facilities on their behalf. We hope to continue to develop our partnership in the future.
“Statkraft has once again demonstrated its innovative approach and willingness to work closely with clients to meet their requirements. We’re currently in discussions with numerous other projects that received CfD contracts during AR4, for solar sites, and other technologies too. We would encourage any generators considering bidding in Allocation Round 5 to contact us and see how we can help.”
Jon Crouch, Director of Commercial Development at Infinis said: “We are delighted to be extending our trading relationship with Statkraft. These are our largest solar construction projects to date, and our first in the CfD. It was important to work with a partner that could combine prior CfD experience with a proven ability to deliver an attractive commercial proposition in an expedited time frame.”