Engie has entered into a new power purchase agreement (PPA) with UK finance company Equitix to purchase the electricity generated by a £25m combined heat and power (CHP) plant to be built in Wrexham, North Wales.
Expected to be completed in early 2018, the new plant will have a total capacity of 4.8MW. Once operational, it will be able to generate approximately 32GWh of renewable energy, as well as reduce nearly 7,000t of carbon emissions every year.
Engie's UK divisional energy solutions chief executive officer Paul Rawson 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.”
The new plant will also have the capability to supply heat to local manufacturing businesses, enabling further reduction of energy consumption in the area.
Under the terms of the 15-year agreement, Equitix will be responsible for funding and managing the new plant, with £12.25m of investment to be received from the UK Green Investment Bank (GIB).
The PPA between the two companies ensures that Engie will be the sole buyer of the entire electricity produced by the Wrexham power generation facility.
The French electric utility company will also purchase all Renewables Obligation Certificates (ROCs) earned by the Wrexham plant, which will help the energy supplier meet its own sustainable sourcing commitment under the government’s renewables obligation.