SSE, TotalEnergies to offer companies shorter renewable power contracts from Seagreen

Renewable power purchase agreements (PPAs) are an increasingly common way for large companies to secure clean energy

  
A general view of a logo at the TotalEnergies electric vehicle fuelling station in the La Defense business district in Paris, France, July 28, 2021.

A general view of a logo at the TotalEnergies electric vehicle fuelling station in the La Defense business district in Paris, France, July 28, 2021.

Reuters/Benoit Tessier

LONDON- SSE and TotalEnergies will later this year launch tenders offering corporate customers power from their Seagreen offshore wind project for five-year terms, around half the length of most renewable power purchase agreements.

Renewable power purchase agreements (PPAs) are an increasingly common way for large companies to secure clean energy and meet their climate targets, but typically have durations of 10 years or more.

“We are innovating the offshore corporate PPA model to help energy-intensive businesses to hit net-zero targets with ease and speed,” said Damien McSweeney, finance director for Seagreen Wind Energy.

Seagreen Wind Energy is the joint venture owned 51% by TotalEnergies and 49% by SSE to develop the wind project off the coast of Scotland.

Once fully operational in 2023 the 3 billion pound ($4.2 billion) Seagreen project will be able to generate enough electricity to power around 1.6 million homes, the companies said.

Tenders to purchase the power will be released later this year.

($1 = 0.7194 pounds)

(Reporting by Susanna Twidale Editing by David Holmes) ((susanna.twidale@thomsonreuters.com; +44 207 5424753;))


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