Wind farm developer Orsted has sealed a 10-year deal to sell energy from the 573 MW Race Bank offshore wind farm to Northumbrian Water.
The power purchase agreement (PPA) is the first of its kind in the UK and indicates that the corporate PPA market can provide renewable energy developers with a viable route to market for projects.
The deal with Northumbria Water is for around 100 GWh per year, equivalent to around 23 MW of capacity at Race Bank.
“For Orsted, this agreement is an important step towards building long-term green partnerships with corporate power customers,” said Alana Kühne, head of Corporate PPAs at the Orsted.
Race Bank will supply power for Northumbrian Water sites in the North East, Essex and Suffolk. The company said that, in addition to supporting its sustainable and renewable energy strategy, the deal with Orsted will drive down costs of operation through a long-term fixed price for power.
Race Bank is located in the North Sea off the Norfolk coast. It is equipped with 91 Siemens Gamesa 6 MW wind turbines and recently achieved full power.