Foresight and EDF Trading enter into a 10-year power purchase agreement (PPA)
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| The European | 19 December 2019
Foresight Group LLP (“Foresight”) is pleased to announce it has agreed a 10-year Power Purchase Agreement (“PPA”) with EDF Trading Ltd. (“EDFT”) a subsidiary of the EDF Group.
The deal is the first 10-year fixed-price PPA to be agreed between Foresight and EDFT highlighting Foresight’s capacity to deliver secured long-term revenues to its investors in an unsubsidised context.
The Guzman plant, which is mechanically completed, is expected to become operational in Q1 2020 generating around 85 GWh every year, making a significant contribution to Spain’s emissions targets.
Carlos Rey, Director at Foresight, commented: “We are delighted to have agreed terms with EDF Trading for this fixed rate 10-year PPA for power generated by our 50 MW solar plant in Puebla de Guzman, which is under construction. Securing the revenues for our largest subsidy-free energy infrastructure investment in the region with such a highly rated counterparty as EDFT is further validation of our investment model for projects with no government-contracted revenues.” He added, “We are proud that our solar portfolio makes a valuable contribution to the fight against climate change and we remain committed to investing for a smarter future.”
Philipp Büssenschütt, Chief Commercial Officer at EDF Trading, commented: “This is an exciting occasion for EDFT to provide wholesale market services in the unsubsidised solar market in Spain. We hope this will be the first of many opportunities for us to partner with Foresight”.
Foresight was advised by Osborne Clarke (Legal) and ONE (strategic PPA advisor).
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