Centrica has secured a long-term contract to trade and balance 76.7% of the electricity generated from the 950MW Moray Offshore Windfarm East.
Image: Centrica’s Energy Marketing and Trading division has signed the PPA. Photo: Courtesy of Centrica plc.
Centrica’s energy marketing and trading division has signed a power purchase agreement (PPA), which will be a 15-year period starting from commercial operation which is scheduled for 2022.
The PPA covers all Balance Responsible Party services and the trading of the power generated in the UK day-ahead market.
Centrica energy marketing and trading co-managing director Cassim Mangerah said: “We are excited to have secured the PPA for the Moray East windfarm. The contract represents another milestone for our route-to-market business and is a testament to the level of sophistication and capability we have built.
“The deal re-affirms our commitment to the development of renewable infrastructure projects and demonstrates further progress in this growth area of our business.”
Located 22km off the coast of Scotland, the Moray East offshore wind farm is the first of two windfarms planned to be developed in the Moray Firth Zone.
The offshore windfarm will be capable of supplying electricity to more than one million households. Under a Contract for Difference (CfD) signed with the UK Government in September 2017, it will supply electricity at £57.50/MWh for 15 years .
Moray East project director Oscar Diaz said: “Moray East is a landmark project for the offshore wind industry, delivering sustainable, renewable generation at a highly competitive power price. This PPA brings high-capacity, low cost, low-carbon power generation to the UK wholesale market on a long-term contract with associated stability for the entire CfD period.”
In December 2018, MHI Vestas had signed a firm turbine supply order for the Moray East offshore wind farm. Under the contract, it will supply 100 of its V164-9.5MW turbines for the project. The order also includes a 15-year service agreement.
The offshore wind farm is expected to avoid nearly 1.3 million tonnes of CO2 and 31,000 tonnes of SO2 emissions from entering the atmosphere.
The wind farm is owned by Moray Offshore Windfarm (East) which is a joint venture between EDP Renewables with 43.3% stake and Engie with 23.3% and Diamond Green (DGL) with 33.4% stake.