Statkraft and Luminous Energy Partner on Innovative Solar Power Purchase Agreement
In a landmark move for renewable energy in the UK, Statkraft has signed a seven-year power purchase agreement (PPA) with Luminous Energy, covering the output from a 29MW solar farm in Norfolk. This PPA represents a significant step forward in how solar energy projects are financed and managed.
A Winning Partnership
Luminous Energy’s Chief Investment Officer, Guy Lavarack, praised Statkraft’s market-leading position and innovative virtual power plant system. These factors, combined with Statkraft’s ability to manage complex metering arrangements, made it the ideal partner for Luminous Energy’s first operational solar farm.
Securing Fixed Power Prices
Luminous Energy has successfully secured fixed power prices for almost all of the output from its Bracon Ash solar farm through two separate sources:
- A Contract for Difference (CfD) from CfD Allocation Round 5.
- A virtual corporate PPA with Bristol Airport.
This project is one of the first to combine these two financial instruments for a single solar farm, guaranteeing fixed income for much of its output.
Innovative Solutions for Enhanced Security
Statkraft’s PPA includes provisions for balancing services and accommodates different pricing for the two portions of the solar farm. This provides additional security by offering physical hedges before the financial contracts commence, allowing for further price certainty and the potential to secure high prices in the interim period.
A key benefit of this PPA is Statkraft’s downregulation service. By responding to price triggers set by Luminous Energy and remotely curtailing the project, Statkraft will prevent Bracon Ash from generating during negative price periods, avoiding unnecessary costs and relieving grid pressure. Statkraft manages this risk through its well-established Virtual Power Plant (VPP) system, which optimizes the flexible generation portfolio in the UK.
Proven Track Record
Statkraft’s UK Markets team has a history of signing successful CfD PPAs for onshore and offshore wind projects from AR1 in 2015 and AR3 in 2019. Since the reintroduction of onshore wind and solar to the CfD auction process, numerous projects have been successful, highlighting Statkraft’s expertise in the renewable energy sector.
Leadership Perspectives
Michelle Lam, Statkraft’s PPA Business Development Manager, emphasized the company’s commitment to innovation:
“Finding new solutions to maximise the returns on behalf of our customers is in our DNA at Statkraft. That’s why it’s been particularly exciting to work with Luminous Energy on this unique PPA. Statkraft has once again proven its innovative approach and willingness to think creatively on behalf of our customers to meet their requirements, and to optimise the options available in the market.”
Join the Conversation
Share your thoughts on Statkraft and Luminous Energy’s innovative PPA and its impact on renewable energy financing. #Statkraft #LuminousEnergy #SolarEnergy #RenewableEnergy #CleanEnergyTransition #PPA #VirtualPowerPlant #SustainableEnergy #GreenTech #EnergySecurity #UKSolar #InnovativeSolutions #CfD #Renewables
Stay tuned for more updates on Statkraft’s projects and the evolving landscape of renewable energy. Together, we can drive the transition to a sustainable, energy-secure future.
Credit: [Image: Luminous Energy]