German renewables developer BayWa r.e. AG has signed a long-term power purchase agreement (PPA) for the 42-MW Dalquhandy wind farm in Scotland just as it is preparing to close the sale of the ten-turbine asset to Greencoat UK Wind Plc (LON:UKW).
BayWa r.e. already has a ten-year fixed-price virtual corporate PPA (CPPA) in place with UK telecommunications company BT Group plc (LON:BT.A) for 80% of the wind farm’s output. The latest agreement is with Norwegian power company Statkraft AS and also covers a period of ten years.
The PPA with Statkraft enables Dalquhandy to meet its requirements under the CPPA, while providing a route-to-market for the remaining 20% of the wind farm’s production, BayWa r.e. and Statkraft said in a joint press release on Thursday.
The Dalquhandy wind farm was built on a restored open cast coal mine in South Lanakshire, Scotland. It is equipped with ten Vestas V136 4.2MW turbines, fully commissioned this year.
In early April, Greencoat UK Wind announced the acquisition of Dalquhandy for around GBP 50 million (USD 62.2m/EUR 57.5m). Thursday’s press release confirms that the sale is seen to close in May this year.
(GBP 1.0 = USD 1.245/EUR 1.151)
