ENGIE signs long-term PPA with Moray Offshore Windfarm East
ENGIE has signed a Power Purchase Agreement (PPA) with Moray Offshore Windfarm (East) Ltd to purchase 23.3% of the electricity generated from the 950MW windfarm. The PPA is for a 15-year period, starting from commercial operation of the windfarm which is scheduled to commence in 2022.
ENGIE currently holds a 23.3% stake in the offshore windfarm, which is being developed 22km from the east coast of Scotland and will produce enough electricity to power the average requirements of around 950,000 UK homes. The windfarm reached financial close in December 2018 having secured over £2bn in funding and the project has now entered its construction phase.
David Alcock, ENGIE UK Divisional CEO, said: “We’re pleased to have secured this PPA for Moray East which strengthens our offer of delivering renewably sourced energy to UK B2B and domestic consumers. This agreement allows ENGIE to be uniquely involved in the project – contributing to both the development of the windfarm as well as the offtake of renewable energy produced.
“Moray East is a key asset in the UK’s move to lower carbon energy production: the PPA further demonstrates ENGIE’s ability to provide integrated energy solutions whilst playing an important role in the nation’s transition to renewable generation”.
Oscar Diaz, Project Director for Moray East said:
“Moray East is a landmark project for the offshore wind industry, delivering sustainable, renewable generation at a highly competitive power price. This PPA brings high-capacity, low cost, low-carbon power generation to the UK wholesale market on a long-term contract with associated stability for the entire CfD period.”
Notes: Moray East
The Moray Offshore Windfarm (East) Limited consortium is currently owned by EDPR (33.3%), Diamond Green Limited, which is partly owned by DGE (33.4%), ENGIE (23.3%), and China Three Gorges (UK) Limited (10%). In 2017 Moray East won a Contract for Difference (CfD) from the UK Government to supply electricity at £57.50/MWh.
On 28th November 2018, the project financing agreements were signed with a syndicate of 16 commercial banks as well as Denmark’s Export Credit Agency (“EKF”) and the Japan Bank for International Cooperation (“JBIC”). The financing includes a £2.1bn debt facility and £0.5bn of ancillary facilities. Financial close occurred on 6th December 2018.
In conjunction with the announcement made today by ENGIE for the signing of a PPA with Moray East, Centrica plc announced that it has secured a PPA to trade and balance 76.7% of electricity produced by the Moray East windfarm.