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30 May 2024

EDF Renewables inks PPA deals with Tesco and BAE Systems for Stranoch onshore wind project

EDF Renewables inks PPA deals with Tesco and BAE Systems for Stranoch onshore wind project

Energy firm starts construction of 102MW wind farm in Dumfries and Galloway as it scores two fresh corporate offtake agreements for the project

EDF Renewables UK has begun construction of its 102MW Stranoch onshore wind farm in Dumfries and Galloway, as well as securing two major corporate Power Purchase Agreements (PPAs) for the Scottish project, the energy firm announced today.

The company today revealed it has signed two separate PPAs with retailer Tesco and aerospace giant BAE Systems to directly source a portion of the electricity set to be generated by the site's 20 turbines, the construction of which is expected to be completed in 2026. EDF Renewables UK said the PPAs would help to de-risk the project by providing long-term investment certainty from the two firms.

The PPAs were facilitated by EDF Business Solutions, with a third agreement covering the rest of the electricity generation set to be announced at a later date, EDF said.

As part of the PPAs, EDF Business Solutions is also set to provide Tesco and BAE Systems with power balancing services which forecast the amount of power generation on a half hourly basis, making sure that the correct amount of power as the forecast changes is sent to the businesses. It said it would also supply shaping services, which convert the variable generation of power into a firm volume of power which is then transferred to the businesses' energy suppliers.

"These two corporate PPAs will utilise EDF's unrivalled energy market knowledge and expert trading capabilities to facilitate the energy transfer to both Tesco and BAE Systems, providing access to clean and affordable energy," said Matthew Nunn, director of EDF Business Solutions. "It is great to see two strong and successful UK businesses supporting the build of large renewable assets and making such big commitments to progress their journeys to net zero."

The PPA with Tesco is expected to provide enough clean electricity to power the equivalent of more than 80 of its average-sized supermarkets for a year, in addition to helping the retailer reach its target of achieving carbon neutrality across its operations by 2035.

In addition, four previously announced solar farms - including two operated by Schroders Greencoat, and two by EDF Renewables UK - are on course to start generating renewable electricity for Tesco through separate PPA deals. Altogether, the five new renewable assets set to come online are set to add 300GWh of electricity per year to the Tesco renewable energy portfolio. 

Tesco said the new clean power facilities would help bring the supermarket closer to its target of 60 per cent renewable electricity through PPAs by 2030, with the clean electricity generated providing Tesco with energy to help power stores, electric home delivery vehicles and EHGVs, as well as air source heat pumps that are used to heat stores. 

Andy Henley, Tesco Group's treasury director, welcomed the deal with EDF Renewables. "Scaling up the production of clean renewable energy has never been more important, so we're delighted to have signed a new wind farm deal with EDF Renewables UK," he said.

Meanwhile, the proportion of clean electricity bought from the wind farm through BAE Systems's PPA is set to will power around 40 per cent of its current UK energy demand.

Deborah Allen, BAE Systems' group climate, environment and infrastructure director added that the firm's own PPA with EDF Renewables UK marked "an important step on our roadmap to reach net zero by 2030".

The wind farm is set to be completed in late 2026 and once operational, EDF said more than £500,000 per year in the sites revenues would be invested back into local projects and initiatives. With the site having a minimum lifespan of 30-years, EDF estimated this amounts to at least £15m being re-invested back into the local area through its dedicated Community Benefit Fund.

Source: Business Green

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