Norwegian Company Announces ‘Innovative’ PPA

• Statkraft has signed a PPA for Luminous Energy's 28.5 MW Bracon Ash Solar Farm in the UK  
• The project has 2 separate financial instruments guaranteeing fixed income for much of its output  
• The Norwegian company says its PPA accommodates different pricing for the 2 portions of the solar farm  

Norway's state-owned energy entity Statkraft has announced a 7-year power purchase agreement (PPA) for the Bracon Ash Solar Farm in Norfolk, UK, calling it the first-of-its-kind solar PPA that combines 2 financial instruments for a single PV project.  

The 28.5 MW solar farm of Luminous Energy already has fixed power prices via 2 separate sources, namely as a Contract for Difference (CfD) Allocation Round 5 winner, and a virtual corporate PPA with Bristol Airport. This guarantees fixed income for most of its output.  

Statkraft said its flexibility and ability to support more complex pricing and settlement have been key to the successful signing of this 'innovative' PPA. 

It accommodates different pricing for the 2 portions of the solar farm and provides additional security of offering physical hedges prior to the contracts commencing, explained the Norwegian company.  

This 'optionality' ensures further price certainty and the potential to secure high prices in the period immediately before the other contracts come into force.  

"We are delighted to sign a long-term power purchase agreement with Statkraft. Their market leading position, virtual power plant system and ability to manage the complex metering arrangements convinced us they were the best counterparty to appoint for our first operational solar farm," said Luminous Energy's Chief Investment Officer Guy Lavarack.