The installation of the wind turbines at Kincardine, the world’s largest floating wind farm, has marked the start of the long-term Power Purchase Agreement (PPA) between Statkraft and Kincardine Offshore Windfarm Ltd (KOWL).
The 50 MW Kincardine floating wind farm will provide over 200,000 MWh per year to the Scottish grid, enough to power over 50,000 homes, Statkraft said.
Statkraft will purchase all electrical output from the floating wind project with a guaranteed minimum price per MWh until 2029. This long-term route-to-market partnership with Statkraft, which is for 100 per cent of the electricity generated by the project, has been set up with pre-agreed terms for the full duration, reducing the financial risk to its investors.
“We entered into this agreement with Statkraft with confidence, knowing that selecting them and selecting this particular PPA structure, provided us with clarity on our long-term income. It also gave us a partner that we were willing to work with on a long-term basis,” Jaime Altolaguirre , KOWL’s Managing Director from Cobra Group, a major shareholder in KOWL, said.
”We wanted a counterparty who had offshore wind experience in the UK and a track record with UK law firms, funders and investors. Statkraft, as Europe’s largest supplier of renewable energy, stood out due to their own large-scale investment and operational experience in this region. This solid experience allowed them to provide bankable and competitive commercial terms and to agree them quickly.”
Located approximately 15 kilometres off the southeast coast of Aberdeenshire, Scotland, the 50 MW Kincardine floating wind farm comprises five Vestas 9.525 MW wind turbines and one 2 MW Vestas unit installed at water depths ranging between 60 metres to 80 metres. The 2 MW turbine has been operating at the site since October 2018.
John Puddephatt , Manager Long Term PPA Origination at Statkraft, said: “We are proud to be one of the partners that helped bring this highly innovative project to completion. This is the first floating project that Statkraft has been involved in and we expect more to follow; a key technology that could help countries around the world achieve their renewable energy targets. PPAs such as these play a key role in providing project owners with financial predictability and security therefore helping enable long term investment and financing.”
The Kincardine floating offshore wind farm has been developed by Kincardine Offshore Wind, a wholly-owned subsidiary of Pilot Offshore Renewables (POR).
Cobra Wind, a subsidiary of ACS Group, has been responsible for the engineering, design, supply, construction, and commissioning of the wind farm.
NOTE: The original article has been updated.