Björn Nullmeyer , Managing Director at wpd and Butendiek’s Director, said: ”We’re pleased to confirm this second PPA for Butendiek, locking down a secure long-term revenue stream for the project. These deals demonstrate how offshore wind power, a vital component of Europe’s green energy transition, can sustain its success beyond tariff periods.”
Together, the two agreements, which commence in July 2024, account for 80.5 per cent of Butendiek’s total production capacity, with the remaining portion of capacity continuing to trade on the merchant market, benefitting of the German EEG scheme, OWP Butendiek said.
According to Pexapark, which supported both agreements, the post-subsidy renewables market requires investors to build sophisticated energy trading strategies as a growing number of assets transition away from EEG subsidies in the foreseeable future. This is essential for navigating market volatility, streamlining operational management and boosting profitability.
Mathieu Ville, Head of PPA Transactions, Pexapark, said: ”This PPA is another step in the right direction for the German wind industry, as it demonstrates that existing offshore wind assets can achieve attractive upside on their post-EEG investment case, by leveraging the PPA market. We look forward to working with more producers and offtakers across Europe that are looking to optimise their revenue streams as these subsidies are gradually stepping down.”
Butendiek , located 32 kilometres off the island of Sylt, and 53 kilometres from the German mainland, is owned by a consortium consisting of CITIC Pacific Limited, Industriens Pensionsforsikring, ITOCHU Corporation, Greencoat Renewables, Octopus Energy Generation, and wpd.
The wind farm consists of 80 Siemens wind turbines with a capacity of 3.6 MW each. Construction started in early 2014 and the wind farm was completed in 2015, providing the equivalent of 370,000 households with renewable energy.
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