GDF Suez has struck a deal with a community wind farm on the Isle of Lewis to buy all the electricity generated from it.
The Power Purchase Agreement (PPA) with Beinn Ghrideag windfarm is the first such agreement of its kind with a community owned renewable generator.
The project is being developed by the Point and Sandwick Development Trsut (PSDT) and will comprise three 3MW wind turbines, generating 25-30GWh of electricity per year.
It will produce enough energy to power up to 9,000 homes.
Paul Roberts, head of local portfolio management at GDF SUEZ Energy UK, said: “We are building a strong reputation as a reliable partner in the power purchasing arena, with many large and successful projects under our belt.
“Our contract offer gave the funders the necessary assurances about their return on investment, while our commercial terms offered the most favorable deal for the developers.
“We’re very excited about supporting our first community renewable energy project.
“Locally owned energy plants like this are playing an increasingly important role in fulfilling the UK’s renewable energy commitment.
“We’re delighted to be helping the Scottish Government achieve its aim of having 500MW of community-owned renewable energy capacity by 2020.”
Santander is providing £11million of the £15million investment required to build the plant, with additional funding coming from the Renewable Energy Investment Fund and the Big Lottery Fund.
All of the profit from the wind farm will be reinvested in community projects, such as insulating homes, renovating local villages, creating jobs and funding the local hospice.
The terms of the PPA were negotiated in an open tender process, with PSDT looking for the best commercial proposition, security and bankability.
Under the PPA, GDF SUEZ Energy UK will buy all the output from the Beinn Ghrideag wind farm, as well as all Renewable Obligation and Levy Exemption Certificates generated by the facility, for a period of 17 years.
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