French utility Engie will take 23.3 per cent of all the power generated by the 950MW Moray East offshore windfarm when its enters commercial operations in 2022.
The firm, which has a 23.3 per cent stake in the project 15 miles off the east coast of Scotland, has signed a 15-year power purchase agreement (PPA).
The Moray East deal means Engie has long-term visibility over the rate it will pay for renewable electricity from the windfarm, selling it on to business and domestic customers.
Engie UK Divisional CEO, David Alcock, said the firm was pleased both with the deal and the ability to both develop and take power from an offshore windfarm.
Moray East project director, Oscar Diaz, said the PPA “brings high-capacity, low cost, low-carbon power generation to the UK wholesale market on a long-term contract with associated stability for the entire CfD period”.
In the last round of auctions, Moray East was awarded a contract for difference (CfD) that guarantees it will receive £57.50/MWh for 15 years. As well as Engie, investors include EDPR (the renewables arm of Portugal’s largest utility firm) and Diamond Generating Europe (DGE, a subsidiary of Mitsubishi).