Centrica signs long term renewables supply contract

Centrica plc today announced it has signed a long term power purchase agreement with NM Renewable Energy, a joint venture between Macquarie Bank and Novera, which will deliver approximately 300GWh of green electricity to British Gas customers every year, enough to supply around 60,000 homes.

The agreement, commencing in April 2005, will run for more than ten years, meeting approximately 5 per cent of Centrica’s rising renewables obligation. Electricity supplied to British Gas customers will be delivered from a diverse range of renewable sources including hydro-electric, landfill gas and an onshore wind farm.

The contract builds on Centrica’s strategy of sourcing green electricity from a balanced portfolio of own generation, contracts and traded market purchases. It expects to invest up to £750 million in renewable assets in the coming years and has interests or ownership of seven wind farm projects, several of which are currently in development.

Jake Ulrich, Managing Director of Centrica Energy, said: "This is another important step forward in our renewables strategy and provides us with long term access to green electricity for our British Gas customers.

"We are pleased to be working with Novera and Macquarie Bank following their purchase of United Utilities’ Green Energy business and this agreement allows our customers to benefit from the diverse range of renewable sources supplying this clean, green power."