UK’s Centrica signs power purchase agreements with Finnish renewables developer

OSLO (Reuters) – British utility Centrica (LON:CNA) has signed two long-term power purchase agreements (PPAs) covering 345 megawatts (MW) of capacity with Finnish renewables developer and fund manager Taaleri Energia, it said on Thursday.

Under the first five-year deal starting with immediate effect, Centrica’s trading unit will offtake Taaleri’s power production from 13 Finnish renewables sites totalling 312 MW and sell it to the market, a company spokesman told Reuters.

Centrica also signed a 10-year PPA with Taaleri starting in 2023 for a 33 MW Norwegian wind power project, where it would not buy the power outright but market it on behalf of the owners, he added.

The company did not reveal financial details for the PPAs.

PPAs have become a key part of renewable energy project development, providing a reliable revenue stream for asset owners as governments have closed or are closing subsidy schemes as wind and solar power technologies mature.

They typically involve the owner of an asset selling their power to a third party or directly to a consumer.