Statkraft signs fixed-price PPA with Boralex

Statkraft, Europe’s largest renewable power generator, and a leading provider of market access and optimisation services has signed a fixed-price PPA with Boralex for Limekiln Wind Farm. The 106MW transmission-connected onshore wind farm is situated in the Scottish Highlands, south of Reay. 

The project, which is currently under construction, is expected to be commissioned by the end of 2024. Limekiln Wind Farm will generate enough clean energy to power the equivalent of around 100,000 homes.

With more than a decade of experience structuring route-to-market PPAs, Statkraft has been able to share its market experience and expertise with Boralex and offer an attractive PPA framework. Statkraft has offered fixed prices for a proportion of the project’s power and Renewable Energy Guarantees of Origin (REGOs) in advance of construction being completed. Gowling WLG acted as legal advisors for Statkraft on this PPA. 

As with all other PPAs signed recently, Statkraft has offered its conditional bidding service, enabling Limekiln to self-curtail during periods of negative pricing which is in both parties’ interest. This helps to avoid 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 our flexible generation portfolio in the UK. 

Michelle Lam, Statkraft’s PPA Business Development Manager, said: “With our extensive market experience, Statkraft are well-placed to provide innovative solutions to maximise the gains from our customers’ renewable assets. I’m pleased we’ve been able to work with Boralex to agree a route-to-market for the power generated at Limekiln Wind Farm, and I hope we can build on this relationship in the future.”

Youcef Khelif, Energy Markets Director of Boralex said: “We are delighted to have achieved this PPA for Limekiln, adding more certainty to the project through the provision of a secure revenue stream during the first years of operation, before the CfD comes into force.

"Statkraft have been great partners and we have appreciated our positive collaboration throughout the process. Limekiln is going from strength to strength and we eagerly anticipate its coming on stream later in the year.”