BayWa r.e. and BT Group have signed a Virtual Power Purchase Agreement (VPPA); one of the first of its kind in the UK, for the Dalquhandy onshore wind farm in South Lanarkshire, Scotland.
Under the terms of the PPA, BT will purchase 80 % of the output of Dalquhandy - approximately 90 GWh/year - along with the associated REGOs, at a fixed price for 10 years.
Negotiations on the PPA started in March 2022, and the agreement was signed in June, before the submission deadline for the Contracts for Difference (CfD) auction. This is the second corporate PPA between BayWa r.e. and BT Group. Both parties had previously signed one of the first corporate PPAs in the UK, in 2014, for the output of the 30 MW Stroupster Wind Farm in the Scottish Highlands.
John Milligan, Managing Director UK and Ireland at BayWa r.e., commented: “Through this corporate VPPA, BT Group has secured a long-term source of renewable energy in an increasingly volatile energy market. This represents an excellent outcome for the Dalquhandy project with a reputable long term offtaker. We are pleased to help BT Group meet their renewable electricity commitments and look forward to bringing the site online towards the end of the year.”
Cyril Pourrat, Chief Procurement Officer at BT Group said: "As one of the largest private purchasers of electricity in the UK, today’s announcement underpins our commitment to use 100 % renewable electricity worldwide where markets allow and sends a clear signal to the market that renewable energy is a key enabler to reach net zero by 2050 in the UK.”
Dalquhandy wind farm is being developed by BayWa r.e. UK. The 42 MW project comprises 10 Vestas V136 wind turbines, located at the former open cast coal mine near Coalburn, South Lanarkshire. It will be able to produce enough green electricity to supply approximately 34,000 households. The wind farm is currently under construction, and is expected to be commissioned in Q4 2022.