Statkraft purchase 50% of DONG’s UK offshore energy production

11.04.2011 08:00 | pressrelease

Statkraft is cementing its place as one of the leading trading and aggregators of wind power in the UK, after signing a new Power Purchase Agreement (PPA) with DONG Naturgas A/S worth around £160m.

The two-year PPA sees Statkraft, Europe’s leader in renewable energy, purchasing 50% of the production of DONG’s Burbo Bank, Gunfleet Sands, Walney and London Array offshore wind farm projects. With an initial installed capacity of 127MW, growing to 545MW, a total delivery of 2.7TWh is estimated during the two year contract period. This equates to approximately £160m based on the current forward price for UK electricity.

Asbjørn Grundt, Executive Vice President, Market Operations and IT, Stakraft AS said: "We are delighted to have concluded this deal with Dong and look forward to building a long and mutually profitable relationship between our two companies.”

Henrik Valgma, Senior Vice President of Portfolio Management and Trading, DONG Energy added: "We are very happy about closing this deal with Statkraft which we see as an important and reliable counterparty going forward. The negotiations has been hard, but performed in a constructive and respectful way. This atmosphere, for sure, paves the way for more future cooperation."

The contract, based on a variable spot price, commenced at midnight on 3 April 2011. Daily management of the contract and the physical power flows will be by Statkraft’s UK Short Term Energy Management team based in Dusseldorf.

Statkraft is Europe's leader in renewable energy. The group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European energy exchanges. Statkraft has more than 3,300 employees in more than 20 countries.

DONG Energy is one of the leading energy groups in Northern Europe. The company is headquartered in Denmark and its business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. DONG Energy has approximately 6,000 employees and generated 55 billion (EUR 7.3 billion) in revenue in 2010. For further information, see www.dongenergy.com