Axpo Nordic signs PPA with GIG’s wind farms in Norway

20 May 2020 (Last Updated May 20th, 2020 16:09)

Swiss energy group Axpo Nordic has further strengthened its presence in the Nordic region by extending route-to-market power purchase agreements (PPA).

Swiss energy group Axpo Nordic has further strengthened its presence in the Nordic region by extending route-to-market power purchase agreements (PPA).

The company has concluded the agreements with UK-based Green Investment Group’s (GIG) for the Buheii and Tysvær wind power farms in Norway.

Located in Kvinesdal, southern Norway, Buheii is a 79.8MW wind farm and Tysvær is 47MW wind farm, which has the capacity to generate clean energy to power 8,803 homes in the region annually.

Currently, the two wind facilities are in the development stage and expected to come online in the second half of next year.

When operational, the Buheii wind farm is expected to offset approximately 15,000 tonnes of carbon emissions annually while the Tysvær wind farm is expected to reduce CO2 emissions by nearly 7,000 tonnes.

Additionally, the two wind facilities are expected to support Norway’s goal of becoming a low emission society by 2050 and achieve climate neutrality by 2030.

Axpo Nordic origination head Kjetil Holm said: “We are seeing a clear trend: Going green is becoming increasingly more important, especially for energy-intensive industrials.

“Customer demand is constantly growing in this segment as these companies want to secure long-term power supply from renewable energies with predictable price conditions to ensure stable and efficient operation.”

Axpo has been working GIG since last year when Axpo Nordic agreed to purchase the output generated by the 43MW Hornamossen wind farm, located in Sweden’s Jönköping municipality.

The two wind farms will be providing clean energy to the Norwegian smelters of Eramet, a global mining and metallurgical group.

Under the deal, Axpo Nordic will be responsible for supplying GIG and Eramet Norway as per the terms in the PPA.

GIG Europe head Edward Northam said: “We are committed to accelerating the transition to a greener economy in Norway and supporting companies from the energy-intensive industrial sector such as Eramet Norway in achieving their requirements for long-term, predictably priced power on attractive commercial terms.

“Together with Axpo Nordic, we show that we can continue to deliver these types of contracts.”