Axpo concludes long-term power purchase agreement for wind farm in Norway
06.12.2016 - Through its Scandinavian subsidiary Axpo Nordic AS, Axpo has concluded a long-term power purchase agreement for an onshore wind farm in Egersund, Norway. The agreement was signed with LUXCARA, a leading asset manager for renewable energy investments. In doing so, Axpo is underpinning its competence as one of the largest marketers of renewable energies in Europe.
The agreement with LUXCARA stipulates that Axpo Nordic AS will purchase 100 per cent of the produced power at a fixed price. The plant is currently under construction. The contract will go into force when construction of the wind farm is completed in the 2nd half of 2017. The plant in Egersund is located directly on the western coast of Norway and with its 33 wind turbines will have a capacity of 111.2 MW. The location in Egersund offers exceptionally good revenue potential for the utilisation of wind power throughout the year.
Marketing power from wind energy opens new revenue opportunities
In addition to the generated power, Axpo Nordic AS has also purchased the corresponding power certificates for the term of the contract. The Norwegian government issues a certificate to power producers for every megawatt-hour generated from renewable energies. These certificates can be traded freely. Since 2012, Norway and Sweden have established a joint certificate system for power from renewable energies, which enables trading on a common market. The typical buyers are power suppliers as well as service and industrial companies. They are obligated to cover a defined proportion of their electricity supply and consumption with these types of certificates.
Kjetil Holm, Head of Origination at Axpo Nordic AS, on the contract: „We are very pleased that LUXCARA has decided on a long-term partnership with Axpo Nordic AS. The agreement reinforces our already strong market position in Northern Europe and contributes to the further expansion of the lucrative business with the marketing of power from renewable energies.“
Axpo Nordic AS with headquarters in Oslo was founded in the year 2003. The company operates on various markets in Scandinavia and the Baltic region, and ranks among the leading market players in the area of trading and origination. The focus is on business with renewable energies: Axpo Nordic AS markets over 2,500 MW from wind power plants.
For several years, Axpo has been focusing on the steady expansion of the European origination business, which offers individual solutions for the marketing and procurement of power, gas, as well as energy certificates for customers throughout Europe. Axpo sees great potential in this business, particularly in the area of wind. Through its country subsidiaries, Axpo markets energy from plants with a total of over 12,000 MW installed capacity for its customers, making Axpo a leading marketer of renewable energies in Europe.
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