Engie last week signed a 4-year power purchase agreement with OWP Arkona, a joint venture of Germany’s E.ON and Norway’s Equinor.
Under the terms of the deal, Engie will buy all of the power from the 385-MWArkona offshore wind farm in the German Baltic Sea, which will equate to roughly 1.5 trillion kWh per year.
Located 35 km northeast of the island of Rugen, Arkona delivered its first electricity to the German national grid earlier this week.
Currently 44 out of the 60 Siemens Gamesa 6.45-MW turbines have been installed so far. The entire project is expected to be commissioned in early 2019.Upon completion, the US$1.6 billion windfarm is expected to deliver power to around 400,000 households and save up to 1.2 million tonnes per year of CO2.
As the exclusive buyer of the site’s production, Engie will sell the electricity on the German day-ahead and intraday markets for four years while managing market risks on OWP Arkona’s behalf.
Engie is in the midst of major expansion in Germany as it seeks to become a leader in direct marketing and renewable energy services in Europe’s largest renewable energy market. The contract is the largest to date in Germany, though it has hinted that more projects are in the pipeline.
Currently Engie has a direct marketing portfolio of 2,000 MW. In addition to developing windfarms and providing technical and commercial management of onshore windfarms for third parties, Engie is also seeking to increase collaboration with partners in
Germany’s energy market to tackle challenges related to the planed end of feed-in tariffs.
In what has been a busy week for the French energy company, Engie also launched the largest energy storage system in the US state of Massachusetts with a 3-MW grid synergy system connected to a solar farm near Boston.
The US$4 million project will supply power from the solar plant to the local utility under a 20-year power purchase agreement. Engie officials have also indicated that the company is working on additional energy storage projects in the region as battery costs decline and policies are enacted to encourage energy storage development.