MeyGen power deal
THE developers of the world’s biggest tidal array have signed a multi-million pound deal to sell electricity generated by the UK project. MeyGen has signed a 10-year Power Purchase Agreement (PPA) with independent energy firm SmartestEnergy for its tidal stream project in the Pentland Firth.
The PPA with SmartestEnergy will provide revenues for the power generated and exported to the grid under the first phase of the project through to 2025. The agreement also covers additional benefits paid to renewable generators including five Renewable Obligation Certificates (ROCs) per megawatt hour (MWh). Construction on MeyGen is expected to commence in Q4 2014 with first power to the grid and revenues being earned in H1 2016.
The funding package for the project, valued at around £51m, is coming from backers including the Scottish government; Highlands and Islands Enterprise (HIE); the UK government, and the Crown Estate.
By Jake Frith
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