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Statkraft signs first-of-a-kind solar PPA with Luminous Energy

03 Jul, 2024

The innovative seven-year Power Purchase Agreement covers covering Bracon Ash Solar Farm in Norfolk

Statkraft, Europe’s largest renewable power generator, and a leading provider of market access and optimisation services has signed an innovative seven-year Power Purchase Agreement (PPA) with Luminous Energy, covering Bracon Ash Solar Farm in Norfolk. The solar farm will have an installed capacity of 28.5MW, generating enough clean energy to power the equivalent of 9,500 homes.

Luminous Energy has successfully secured fixed power prices for almost all of Bracon Ash Solar Farm’s output via two separate sources - a Contract for Difference (CfD) from CfD Allocation Round 5 and a virtual Corporate PPA with Bristol Airport. 

Bracon Ash Solar Farm
Bracon Ash Solar Farm will have an installed capacity of 28.5MW

It is believed to be one of the first projects to combine these two financial instruments for a single solar farm, guaranteeing fixed income for much of its output. Statkraft’s flexibility and ability to support more complex pricing and settlement has been key to the success in signing this PPA.

As well as providing balancing services, Statkraft’s PPA accommodates different pricing for the two portions of the solar farm and provides additional security of offering physical hedges prior to the financial contracts commencing. This optionality allows further price certainty and the potential to secure high prices in the period immediately before the other contracts commence.

Statkraft’s downregulation service is an important benefit to Luminous Energy of this PPA. By responding to a price trigger set by Luminous Energy and curtailing the project remotely, Statkraft will prevent Bracon Ash from generating during negative price periods and incurring unnecessary costs whilst also relieving pressure on the grid. 

Statkraft can manage this risk for generators via its well-established Virtual Power Plant (VPP) system. Statkraft’s VPP has been used effectively for a number of years to manage our renewables PPA portfolio in Germany and elsewhere in Europe, and to optimise the flexible generation portfolio in the UK.

Statkraft’s UK Markets team has been a consistent part of the market for many years, having previously signed CfD PPAs for onshore and offshore wind projects from AR1 in 2015, and AR3 in 2019. Since onshore wind and solar were re-introduced to the CfD auction process, a large number of projects have been successful. Statkraft has been in contact with the majority of the successful parties to explain the different Route to Market services for power and Renewable Energy Guarantees of Origin (REGO) that it offers, as well as risk management. and potential project optimisation. 

Michelle Lam, Statkraft’s PPA Business Development Manager, said: “Finding new solutions to maximise the returns on behalf of our customers is in our DNA at Statkraft. That’s why it’s been particularly exciting to work with Luminous Energy on this unique PPA. 

“Statkraft has once again proven its innovative approach and willingness to think creatively on behalf of our customers to meet their requirements, and to optimise the options available in the market.”

Guy Lavarack, Chief Investment Officer from Luminous Energy, said: “We are delighted to sign a long-term power purchase agreement with Statkraft. Their market leading position, virtual power plant system and ability to manage the complex metering arrangements convinced us they were the best counterparty to appoint for our first operational solar farm”. 


Gary Connor
Media Relations Manager, Statkraft UK