Date
E.g., 21/11/2017
E.g., 21/11/2017
Company News

Centrica signs landmark balancing and hedging contract for wind farm

Neas Energy, part of Centrica, has entered into a long-term route to market contract for Europe’s single biggest onshore wind installation, Markbygden ETT in Sweden.

The 650 MW wind installation Markbygden ETT in Sweden will be delivered and operated by the project sponsors GE and the Green Investment Group Limited (GIG), part of Macquarie Group.

Neas Energy, part of Centrica, has entered into a long-term route to market contract with the project sponsors based on a new and advanced balancing and hedging structure. 

“We are excited to have been chosen by the project sponsors to provide route to market services and deliver a pioneering solution for cross commodity hedging” explained Cassim Mangerah, Managing Director of Centrica Energy Marketing & Trading.

“Neas Energy has been active in Sweden for several years and this project re-affirms our commitment to the development of renewable infrastructure projects in the Nordic region.”

The agreement includes a number of financial and physical cross-commodity products and services to manage the market price risks related to the Swedish subsidy scheme, in conjunction with balancing services to manage the sale of power production in the Nordic spot market.

Behind the services provided by Centrica is a 19-year fixed volume Power Purchase Agreement (PPA) between the project sponsors and a subsidiary of Norsk Hydro, one of the largest aluminium producers in the world. This makes the PPA for the Markbygden ETT wind farm the largest known corporate PPA in the world, adding to the more than 1GW of renewable energy procurement capacity purchased by European corporate off-takers in 2016.

A Landmark Deal

Cassim Mangerah added: “This is a landmark deal for Centrica Energy Marketing & Trading which testifies to our commitment to route to market services for renewables as a key strategic pillar in our business. We see a growing demand for new and more advanced financial structures to manage market risks in the energy infrastructure investment community.

“The time of subsidised investments is coming to an end, and with our experience and capabilities in energy marketing and trading, I believe we are in a unique position to bring innovative solutions to the market, satisfying the risk profiles of the investors and project financers.”   

GE Renewable Energy will supply 179 of its 3.6 MW turbines and the project is set to begin commissioning turbines in the second half of 2018 and be fully operational by the end of 2019. The 650 MW Markbygden ETT wind farm is expected to avoid approximately 497,000 tons of carbon emissions.

To find out more about Centrica Energy Marketing & Trading and Neas Energy, go to:

Centrica’s Energy Marketing & Trading

Neas Energy

 

For media queries:

Alan McLaughlin

Corporate Affairs Director, Centrica

 P: 07789 570598

E: alan.mclaughlin@centrica.com

 

Rasmus Buhl Moller

Head of Corporate Affairs, Neas Energy

P: +45 4131 7815

E: rbm@neasenergy.com

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