Statkraft Secures PPA for 80MW UK Solar Farm
- Statkraft secures 10-year PPA with FP Lux Group for Scurf Dyke solar farm in Yorkshire, including battery storage optimization. BayWa r.e. and Statkraft team up for successful project development.
Norwegian developer Statkraft has signed a 10-year power purchase agreement (PPA) with FP Lux Group for output from the 80MW Scurf Dyke solar farm in Yorkshire, England. The deal also includes an 8MW battery storage system adjacent to the solar farm, which Statkraft will optimize. BayWa r.e. acted in an EPC role to develop and construct the project, with its Asset Operations division responsible for long-term operations and maintenance.
The Scurf Dyke Solar Farm was project financed and required a long-term offtake contract to ensure a clear route to market for power and Renewable Energy Guarantees of Origin (REGOs). Statkraft has a well-established Virtual Power Plant (VPP) system to manage risk for generators, allowing them to avoid generating power during negative price periods. The company's UK Markets team has been involved in the market for years, signing PPAs for onshore and offshore wind projects in previous CfD auctions.
Statkraft's PPA origination manager John Puddephatt expressed excitement about the partnership with FP Lux Group and the potential addition of a battery storage system to the project. Re:cap Global Investors chief executive Thomas Seibel highlighted the importance of working with an offtaker that could offer route to market optimization services for battery storage, competitive commercial terms, and a PCG from a highly rated parent company.
What benefits does the 10-year PPA with FP Lux Group bring to Scurf Dyke Solar Farm?
- Stable revenue stream for Scurf Dyke Solar Farm over the next 10 years
- Financial security and predictability for future operations and maintenance
- Increased credibility and attractiveness to potential investors and partners
- Opportunity for expansion and growth of the solar farm's capacity
- Contribution to the overall goal of increasing renewable energy production and reducing carbon emissions in the region