Gemini announced today that it has signed an off-take balance and services agreement with DELTA, an energy company based in the province of Zeeland, which as a result, will soon be the biggest supplier of Dutch wind energy.
DELTA will purchase green electricity from Gemini, the biggest offshore wind farm in the Netherlands. This agreement secures the route to market for the project’s electricity and helps Gemini manage costs related to the natural volatility of wind-powered production. The contract is an important complement to the project’s main revenue stream: the SDEs that will be received from the Netherlands government.
DELTA CEO Arnoud Kamerbeek made the announcement today during the presentation of the company’s annual results. Kamerbeek said: “The agreement with Gemini marks a major step in our ambition to become a CO2-free energy provider by 2050. With this step, DELTA will soon become the biggest supplier of renewable wind energy in the Netherlands. This will enable us to implement our strategy and respond effectively to the growing demands from our business as well as retail customers to satisfy their energy needs in the best way possible. We aim to do so with offshore and land-based wind energy, biomass-based energy wherever possible, and with CO2-efficient gas-fired and nuclear power station when necessary. The contract with Gemini will enable DELTA to meet the energy needs of its customers in an optimal fashion for the foreseeable future.”
The agreement means that DELTA will become the biggest purchaser of renewable electricity produced by offshore wind farms in the North Sea. With a production capacity of 600 MW, Gemini will be roughly 5 times bigger than the largest Dutch wind farm presently in operation. Its total production will be roughly 2.6 TWh per year, covering the electricity needs of approximately 785,000 households. This is four times the number of households in the Dutch province of Zeeland.
Tony Anderson on behalf of Northland Power Inc., Gemini’s majority shareholder, said: “Today’s announcement with DELTA represents yet another milestone in the development of Gemini. This agreement, when combined with the SDE contract with the Dutch government, provides a highly certain and secure revenue stream for the project. Having this agreement with DELTA in place positions us well as we work towards financial close on the project’s senior and junior debt, which is scheduled for later this month.”
Press release, April 3, 2014; Image: typhoonoffshore