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Dalquhandy Wind Farm: Offtake Agreement with Statkraft

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Renewable energy companies, BayWa r.e. and Statkraft have signed a 10-year Power Purchase Agreement (PPA) for Dalquhandy Wind Farm, a 10 turbine, 42 MW transmission connected project, located on a restored former open cast coal mine in South Lanarkshire, Scotland.

In 2022 BayWa r.e. secured a 10-year fixed price virtual Corporate PPA (CPPA) with BT for 80% of the wind farm’s output. The PPA with Statkraft enables Dalquhandy to meet its requirements under the CPPA, as well as providing a route-to-market for the remaining 20% of power produced by the wind farm.

Dalquhandy was fully commissioned this year and is able to produce enough green electricity to supply approximately 31,000 households.

BayWa r.e. and Statkraft are long-term partners and have signed a number of PPA deals, including for the 41.7 MWp Tordesillas solar project in 2021 as well as the 170 MWp solar project Don Rodrigo in Spain in 2018.

BayWa r.e. recently announced the sale of the project to Greencoat UK Wind PLC. The sale is expected to be completed in May 2023. Including Dalquhandy Wind Farm, BayWa r.e. has developed projects with an installed capacity of 550 MW in the UK and the UK team is currently working on an active construction pipeline of nine solar and wind projects.

John Milligan, Managing Director of BayWa r.e. UK said: “As part of our development and investment in Dalquhandy Wind Farm, we had a set of specific requirements for this long-term PPA. Statkraft, a trusted BayWa r.e. partner, was able to offer competitive terms while also meeting each of these requirements. We are delighted to have fully commissioned Dalquhandy to supply our partners with domestically generated renewable energy, as well as contribute to the UK government’s Net Zero commitments.”

Duncan Dale, Vice President Customers Facing Business UK & Ireland at Statkraft:“We are very pleased to have worked with BayWa r.e. on this PPA. They are a developer with a strong track record in the UK. Both parties have significant experience and were able to work together in an innovative way to find practical solutions to meet their specific requirements promptly so that the PPA could be agreed ahead of commissioning. As the UK market evolves, we are always looking for new ways to support developers and enable investment.”

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