OSLO (Reuters) - Danske Commodities, oil and gas major Equinor's (OL:EQNR) power trading arm, has signed a 15-year power purchase agreement for Britain's Dogger Bank offshore wind farm, it said on Monday.
Dogger Bank, located 130km off the coast of Yorkshire in northern England, is under construction and set to become the world’s largest offshore wind farm with a capacity of 3.6 gigawatts, enough to power 4.5 million UK households.
It is owned by Equinor and Britain's SSE Renewables (L:SSE), both holding a 50% share.
Under the agreement, Danske Commodities will be responsible for trading and balancing 480 megawatts of the wind farm’s capacity on the power market.
“Danske Commodities has traded power in the UK for more than ten years and we see PPAs as a crucial part of ensuring the continued development of renewables,” said Tor Mosegaard, Danske Commodities’ Head of European Power Trading.
Power purchase agreements are becoming an increasingly common financing and marketing tool for renewable energy installations, especially offshore wind farms. They typically involve the owner of an asset selling their power to a third party or directly to a consumer.