Statkraft has entered the Irish power market. It has been granted a supply licence in the Republic of Ireland and has successfully concluded a seven-year power purchase agreement (PPA) with Castledockrell, a 41.4MW wind farm. The timing coincides with the new iSEM market launch, due on 1 October, which requires all generators and suppliers to become “balancing responsible”.
Castledockrell will mitigate the trading risk that has emerged for wind farms as a result of the new electricity arrangements in Ireland. Statkraft will be providing customers with REFIT PPAs where it purchases the power directly from the wind farm. The market entry will also see Statkraft offer trading services to generators in arrangements with other supply companies to manage this new balancing risk. The capacity of wind generation is projected to increase significantly in Ireland and this is expected to amplify the need for enhanced balancing and trading services to manage this risk effectively.
Speaking at the announcement, Duncan Dale, director of Statkraft UK, said: “We are excited about this market entry and are pleased by the very positive feedback that we received from wind farm owners who welcome a new service provider. We have significant experience in trading the short term markets for renewables across Europe and the introduction of ISEM presents us with a trading landscape nearly identical to other markets in which we are already very active.”
Statkraft has a portfolio of 13,000 MW, and is one of the largest managers of renewable trading in the UK, German and Nordic markets. It is owned by the Norwegian Government and has an A-credit rating.