With a shared vision to drive the net zero transition, renewable energy companies, BayWa r.e. and SmartestEnergy Limited are pleased to announce the start of a new partnership, signing a six-year Power Purchase Agreement (PPA) for Broken Cross Wind Farm, a 9-turbine transmission-connected project located in South Lanarkshire, Scotland.
BayWa r.e. acquired the Broken Cross Wind Farm in 2021, with plans to construct a wind farm consisting of 9 turbines on the site of a former opencast coal mine. With a planned capacity of 43.2 MW, the project has the potential to supply approximately 36.900 homes* annually with clean, green electricity, supporting the UK government’s renewable energy targets.
The 6-year partnership commenced on the 1st December 2023, providing BayWa r.e with a viable route-to-market based on Smartest Energy’s CfD PPA structure. The contract provides a flexible framework that supports the project’s transition through the construction, pre-CfD and CfD phases, enabling BayWa r.e. to maximise the wind farm’s revenues.
With the addition of the Broken Cross Wind Farm to its portfolio, SmartestEnergy Limited further enhances its renewable supply offering. By adding to their existing wind, solar and Energy from Waste PPAs, they continue to connect C&I customers to independent renewable generators like BayWa r.e., supporting important steps towards net zero.
Robert Groves, CEO at Smartest Energy Limited, said:
“We are very pleased to have formed this important partnership with BayWa r.e., a leading developer who shares our vision to drive positive change in the system and transition to net zero. With close collaboration, we were able to overcome various complexities and find innovative solutions to meet their requirements. As the energy landscape evolves, we look forward to further developing our relationship and continue our mission to champion greener, smarter energy for generations.”
During construction of the wind farm, the restoration and preservation of the land, which was previously an opencast coal mine, was prioritised to create habitats for a variety of plant and wildlife species to thrive. The project will also provide benefits to the community, with an annual community benefits package of £5,000 per installed megawatt, shared between the communities of Coalburn, Lesmahagow, Douglas Water and Rigside. The fund will amount to circa £6 million during the operational lifecycle of the project.
Christine McGregor, Managing Director at BayWa r.e. UK Ltd., said:
“We are delighted to be partnering with SmartestEnergy Limited at Broken Cross. We were looking for an offtaker that could not only provide a competitive and bankable CfD offtake arrangement, but also allow us the flexibility to maximise our pre-CfD merchant revenues.
Smartest were able to meet all of our requirements, and also ensured that the relevant contracts were in place to allow energisation and financial close on schedule. Being set on a former opencast mine, Broken Cross is the perfect example for the UK’s transition to cleaner, more sustainable and domestic generation of energy away from fossil fuels, and we look forward to working with Smartest to deliver the project.”
*Calculated using the most recent statistics from DESNZ showing that annual GB average domestic household consumption is 3,509kWh (as of December 2022, updated annually): number of megawatts installed, multiplied by a site specific load factor expressed as a fraction of 1, multiplied by number of hours in a year, divided by average annual domestic electricity consumption expressed in MWh.
