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Wednesday, March 23, 2011

Renewable Energy Generation Ltd Signs New Power Purchase Agreement

Renewable Energy Generation, the UK renewable energy developer and operator, apprised that it has signed a new power purchase agreement (“PPA”) covering 8 of its 10 operating UK wind projects. The sites total 34.4MW of capacity and include REG’s new projects at Goonhilly Downs, Loscar and High Haswell.

The PPA has been signed with Statkraft Markets GMBH. Statkraft, the Norwegian energy utility, is Europe’s largest renewable energy company, operating and developing hydropower, wind power, gas power and district heating schemes across Europe. Statkraft has an A- credit rating from both Moody’s and Standard & Poor.

The PPA provides REG with fixed prices until March 2014 and covers all electrical output along with Levy Exemption Certificates, Triads, REGOs, Renewable Obligation Certificates and other embedded benefits generated by the wind farms.

Andrew Whalley, Chief Executive Officer of REG, said: “The PPA we have signed with Statkraft is a component of the current refinancing of REG’s existing operating wind farms and is highly flexible, allowing REG shareholders to benefit from any increases in UK power prices beyond 2014. We are delighted to be able to sign this off take agreement with Statkraft which provides a strong counterparty to our project financing initiative.”

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