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ENGIE provides 15-year power purchase agreement for new renewable energy plant in Wrexham
ENGIE has agreed a new 15-year power purchase agreement (PPA) with Equitix to buy all the electricity generated by a new Combined Heat and Power (CHP) plant to be constructed in Wrexham, North Wales.
The £25m plant is due for completion in early 2018. The plant will have a capacity of 4.8MW, generating around 32GWh of renewable electricity a year and saving approximately 7,000 tonnes of CO2 emissions annually. Equitix will fund and manage the plant, with £12.25m of investment from the UK Green Investment Bank plc (GIB). As well as generating electricity, the plant will have the capability to provide heat to local manufacturing business – helping to further reduce energy consumption in the area.
ENGIE has worked with Equitix on two previous renewable energy projects, and will be the sole purchaser of all energy generated by the Wrexham plant. The PPA that sets out this arrangement is a key element in the development of any new energy plant, giving investors the assurance that there is a long-term buyer for the plant’s output – guaranteeing a return on their investment.
In addition, ENGIE will purchase all ROC certificates earned by the facility, which help the energy supplier to meet its own sustainable sourcing commitment under the government’s Renewables Obligation.
Paul Rawson ENGIE’s UK Divisional CEO for Energy Solutions said: “Having worked closely with us to develop PPAs for other projects, Equitix knew we had the experience and expertise to offer a suitable PPA for Wrexham, giving them the payment assurances they needed. The rates we will pay for the plant’s output will be index linked, giving investors the security of market-reflective prices for all electricity produced by the plant.”