Ørsted and innogy have entered a power purchase agreement (PPA) under which Ørsted will offtake 100% of the power generated by the Triton Knoll offshore wind farm, for which innogy has now reached financial close .
The agreement with innogy covers the first 15 years of generation from the 860MW offshore wind farm, expected to be commissioned in 2021.
Once Triton Knoll is operational, Ørsted will handle the intra-day fluctuations in volume and prices balancing the power into the grid. Ørsted’s market exposure is limited to fluctuations in power prices on a day-to-day basis, the company said.
Hans Bünting , COO Renewables of innogy SE, said: “With the signing of this PPA with Ørsted and the financial closure, which we’ve reached today, we’re confident that our flagship Triton Knoll Offshore Wind Farm has robust, financial security at its heart. The successful delivery of this arrangement with Ørsted also demonstrates the continued success of innogy’s ability to forge valued, strategic partnerships as we continue to grow our offshore portfolio across the globe. While we may compete in some areas of renewables, I’m delighted that we’ve secured this cooperation with Ørsted and look forward to working closely with them in the future.”
The agreement is similar to those that Ørsted has with partners in its own portfolio of offshore wind assets, the offshore wind giant explained.
Morten Buchgreitz , Executive Vice President, Ørsted Customer Solutions, said: “Ørsted acknowledges innogy as one of the most successful European energy companies. As we do ourselves, innogy relies on the expansion of renewable energy to grow its business activities and fight climate changes. Therefore, I’m proud that innogy and its partner companies have entrusted us to handle a 15-year power purchase agreement. I’m very much looking forward to our cooperation.”
The 90-turbine Triton Knoll will be capable of supplying power equivalent to more than 800,000 UK households annually.