Europe's largest renewable energy company, the Norwegian utility Statkraft, has entered into long-term power purchase agreements (PPAs) with two independently owned wind farms in Scotland and Wales.

The company made the announcement at the RenewableUK 2010 Conference in Glasgow, stating that the agreements mark the launch of its renewable power purchase business in the UK.

Both wind farm projects secured bank debt finance with the agreements lasting up to 15 years and encompassing the purchase of electricity and renewable benefits. 

One arrangement covers two wind farms in Wales, while the another is for a wind farm in Aberdeenshire. Two of the wind farms are now operational; the third is currently under construction.

Asbjørn Grundt, Executive Vice President, Head of Market Operations and IT at Statkraft said ”Statkraft’s ambition is to be the leading renewable energy company in Europe, and a driving force for renewable energy in the United Kingdom.”

Tim Foster, Head of Renewable Origination in the UK in Statkraft said “Today’s announcement is an important milestone for both Statkraft and independent renewable generators,”

He added, “It clearly demonstrates that Statkraft, as a major European generator, is a credible alternative to the incumbent Big 6 energy suppliers in the UK for Power Purchase Agreement. In closing the first PPAs, Statkraft has demonstrated that its personal and flexible approach can deliver value to the Generator whilst also satisfying the Bank’s financing requirements,”