Statkraft, one of the largest managers of renewable trading in the UK, German and Nordic markets, has announced its entry into the Irish power market.
Image: Castledockrell wind farm. Photo Courtesy of Castledockrell.
It has been granted a Supply Licence in ROI and has successfully concluded its first long term REFIT Power Purchase Agreement (PPA). The PPA is with Castledockrell, a 41.4 MW wind farm, for seven years.
The timing coincides with the new iSEM market launch on 1st October which requires all generators and suppliers to become “balancing responsible”.
With this agreement Castledockrell will mitigate the trading risk that has emerged for wind farms as a result of the new electricity arrangement in Ireland. Both parties underline the good cooperation and efficiency in getting the PPA arrangements in place given tight timelines.
Statkraft will be providing customers with REFIT PPAs where it purchases the power directly from the wind farm. The market entry will also see Europe’s leading market access provider offer trading services to generators in arrangements with other supply companies to manage this new balancing risk. The capacity of wind generation is projected to increase significantly in Ireland and this is expected to amplify the need for enhanced balancing and trading services to manage this risk effectively.
Statkraft are working closely with its consulting partners, Captured Carbon Limited (CCL) to build its relationship with customers and service the contracts in Ireland.
Statkraft UK Director Duncan Dale said: “We are excited about this market entry and are pleased by the very positive feedback that we received from wind farm owners who welcome a new service provider. We have significant experience in trading the short term markets for renewables across Europe and the introduction of ISEM presents us with a trading landscape nearly identical to other markets in which we are already very active.
“With our expertise in this area, we are confident that we will bring added value and reduced costs to windfarm generators in Ireland.”
CCL managing director Duncan O’Toole said: “Statkraft’s market entry into Ireland will bring about increased competition and offers increased value to participants in the wholesale electricity market. The fact that it can offer its services to wind farms already in arrangements with other suppliers will introduce significant efficiencies that will positively impact electricity consumers and investors in the renewable electricity market in Ireland. At a time when electricity prices are being increased in Ireland this is a very timely arrival for the Irish electricity market.”
With a portfolio of circa 13,000 MW, Statkraft is one of the largest managers of renewable trading in the UK, German and Nordic markets. It is Europe’s largest renewable generator and has been in existence for 120 years. It is owned by the Norwegian Government and has an A-credit rating.
Established in 2007, Captured Carbon Ltd, has been active in Irish electricity market for over a decade with specific expertise in renewable electricity. It is well known for bringing innovative solutions to the Irish electricity market having pioneered the trading of various green certificates offering increased revenues to renewable generators. The company employs eight staff and headed by its owner and Managing Director Duncan O’Toole.
Source: Company Press Release