Seagreen to Offer Shorter-Term Corporate Power Purchase Agreements
The 1.14 GW Seagreen wind farm, soon to be Scotland’s largest offshore wind farm, is launching its offshore corporate purchase power agreement (cPPA) offerings.
The Seagreen terms significantly shorten the typical cPPA length, providing buyers with an alternative option to standard longer-term cPPAs which are typically ten years or more in duration, Seagreen Wind Energy, the developer of the project, said.
Seagreen’s cPPAs offer an alternative to traditional cPPAs for many businesses to access buying renewable energy directly from an offshore wind farm. With a five-year contract length, it offers corporates a balance of contract duration flexibility with surety of supply, the developer said.
Businesses will be able to purchase energy in blocks of 20 MW or 100 GWh per annum as part of the Seagreen offshore cPPA.
Damien McSweeney, Finance Director for Seagreen Wind Energy, said: ”Seagreen offers an opportunity for large corporates to buy renewable energy that may normally be out of their reach. We are innovating the offshore cPPA model to help energy-intensive businesses to hit net-zero targets with ease and speed.”
Seagreen Offshore Wind Farm will be operational in 2023 and will be able to produce enough low-carbon electricity to power 1.6 million homes or the equivalent of almost every home and business in Edinburgh and Glasgow combined, the developer said.
The GBP 3 billion joint venture project between TotalEnergies and SSE Renewables will comprise 114 Vestas 10 MW turbines in the deep waters 27 kilometres off the coast of Angus in the North Sea, and will be the world’s deepest fixed-bottom offshore wind farm.
SSE Renewables is leading the development and construction of the joint venture project, supported by TotalEnergies, and will operate Seagreen on completion.
Paul Cooley, Director of Capital Projects at SSE Renewables, said: ”Seagreen is a crucial offshore wind energy project that is having a real impact in helping Scotland and the UK ‘Build Back Better’. The short-term offshore cPPA allows corporates the chance to help decarbonise their renewable energy supplies through one contract with a truly iconic wind farm – a major competitive edge in the year of COP26.”
Tenders for Seagreen’s offshore cPPAs will be released later this year, after the summer.
Olivier Terneaud, Vice President Offshore Wind at TotalEnergies, said: ”Seagreen is a key strategic project and it underlines both our commitment to investing in Scotland and reaching net zero. By becoming a multi-energy company, we aim to address the dual challenge of the energy transition: to supply more energy but with fewer emissions.”