Direct Energy Business, a subsidiary of Centrica, has signed power purchase agreement (PPA) with RWE Group’s newest subsidiary, RWE Renewables for the 25MW Canadian Hull solar project.

The solar photovoltaic (PV) plant, which is located in in Southern Alberta’s Taber county, started commercial operations recently.

Under the 10-year contract, the power generated by the facility will be supplied to Direct Energy’s Canadian customers.

RWE Renewables Wind Onshore and Solar Photovoltaics Americas chief operating officer Silvia Ortín Rios said: “With this deal, we are demonstrating our extensive capabilities as a leading integrated renewables player ranging from project development, construction, operations to commercialization.

“The contract with Direct Energy illustrates our expertise in marketing green electricity on the basis of bilateral power purchase agreements.

“Solar energy is already competitive and decreasing prices for equipment will further drive this development in the long term.”

The Canadian Hull solar project can generate 50,000MWh of power annually

As part of the long-term contract that commenced in early-August this year, RWE’s solar farm will supply carbon-free energy as well as the environmental attributes to Direct Energy.

The solar project is estimated to generate approximately 50,000MWh of power annually that is equivalent supply enough electricity to nearly 6,500 Canadian households.

RWE is also operating a 22MW solar farm nearby in Vauxhall, beside the Hull photovoltaic plant.

According to the company , the two solar plants can produce enough green electricity to supply the equivalent of about 12,500 Canadian homes.

Direct Energy Business Western Origination director Lance Henderson said: “This PPA demonstrates Direct Energy’s unique ability to create long-term 100 percent renewable energy solutions that combine the strengths of our customers, project developers and energy retailers alike.”

In April this year, RWE Renewables completed the successful tax equity financing for its 151MW Peyton Creek wind farm in Matagorda County, Texas.