Norwegian state-owned energy group Statkraft has secured a long-term power purchase agreement (PPA) for what it says is one of the largest solar power plants in all of the UK with over 80 MW solar PV and 8 MW battery energy storage system (BESS) capacity.
With an installed capacity of 80.6 MW, the Scurf Dyke Solar Farm and Battery is located near Driffield in the East Riding of Yorkshire.
This is part of Statkraft's win in the country's Contracts for Difference (CfD) Allocation Round 4 (AR4). The 10-year PPA, along with an optimization agreement, has been signed with international investor FP Lux Group, advised by re:cap global investors ag.
The EPC contractor of the solar farm, BayWa r.e. and FP Lux are now constructing the 8 MW BESS adjacent to the farm to be optimized by Statkraft.
Statkraft says the long-term offtake contract was essential to have a clear route to market for power and Renewable Energy Guarantees of Origin (REGO).
"Any projects from AR4 will not receive a top up under the revised CfD mechanism, for any output generated during a negative price period. However, Statkraft can manage this risk for generators via its well-established Virtual Power Plant (VPP) system," said Statkraft.