Energy firms constricting wind farms off the Dutch coast are discussing to trade some of their green power straightly to huge companies rather than providing it to the wholesale sector, they claimed to the media. Makers of offshore wind farms have conventionally depended on government subsidy transactions to guarantee revenue, but considerable slashes in support indicate providers now have to search new ways to secure future income. One of these is securing big electricity users, for instance industrial corporates that operate heavy machinery or technology forms that require electricity for energy-concentrated data centers, into multi-year contracts of supply, also dubbed as PPAs (Power Purchase Agreements).
“We are certainly speaking to our customers about PPAs from premeditated projects such as Borssele 4 and 3,” claimed manager at Eneco for strategic partner management, Kirsten Barnhoorn, to the media in an interview. In 2014, Eneco, in association with project partners Van Oord, Royal Dutch Shell, and Mitsubishi/DGE, won a contract to construct 700 MW (Megawatts) of offshore wind capacity all over 2 sites, dubbed as Borssele 4 and 3. The Dutch power manufacturer already counts the Google, Dutch Railways, Royal Schiphol Group, and Amsterdam and FujiFilm’s airport, among its renewable energy users.
“Their long-term promise via corporate PPAs is assisting us to spend in new projects of renewable energy,” Barnhoorn claimed to the media in an interview. Eneco will trade 50% of the energy to be made by Borssele 4 and 3, while Shell will promote the other 50%. Shell refused to answer on who it will trade the energy to. For DONG Energy, the competitor offshore wind builder that has a deal with Dutch Government to build offshore wind farms at Borssele 2 and 1, locking a huge corporate purchaser is also on the table. “In the Dutch industry, this is something we are taking into consideration. It is a new way to look at your income line,” claimed head at DONG Energy for wind asset portfolio development, Daniel Nathan, to the media in an interview last week.
“PPAs with companies are ordinary practice in the renewable energy market of the U.S.,” claimed Nathan.