Statkraft and Suomen Voima Forge a Pioneering Agreement
In an exciting development in the renewable energy sector, Statkraft and Suomen Voima are set to embark on a long-term collaboration through a 15-year power purchase agreement (PPA) that will start in early 2025. This agreement is poised to facilitate an estimated annual volume of 100 GWh, generated from Statkraft’s Nedre Bjurfors hydropower plant and the Björkhöjden wind farm.
Strengthening the Renewable Energy Portfolio
The combination of these two production technologies marks a significant enhancement to Suomen Voima’s energy portfolio. Ketil Hovland, Senior Originator of Statkraft AS, expressed his enthusiasm about this partnership, noting, "We are pleased to have concluded this PPA hedging contract with Suomen Voima and are looking forward to 15 years of cooperation." This statement underscores the mutual benefits anticipated in this collaboration.
About the Power Generation Sources
The Nedre Bjurfors hydropower plant, operational since 1959 and boasting a capacity of 78 MW, produces approximately 400 GWh each year, with Suomen Voima set to receive around 50 GWh of this output, which aligns perfectly with the contract volumes. On the other hand, the Björkhöjden wind farm, which began operations in 2015, contributes the remaining half of the contracted capacity. This wind farm comprises 90 Siemens wind turbines, each capable of generating 3.2 MW, collectively producing about 700 GWh annually.
A Vision for Geographical Diversification
Pekka Saijonmaa, CEO of Suomen Voima, highlighted the strategic importance of this venture: "We’d like to thank Statkraft for the enjoyable and productive collaboration. It has significantly enhanced our geographical diversification in the Nordics, allowing us to secure our first deal in Sweden, which integrates seamlessly with our existing operations in both Finnish and Norwegian energy markets." This emphasis on geographical diversification reflects a prudent business strategy in the evolving landscape of renewable energy.
About Statkraft
Statkraft stands as a leader in hydropower across the globe and is recognized as Europe’s largest generator of renewable energy. The company also ranks as the fourth largest electricity producer in Sweden, with a diverse energy production profile that spans hydropower, wind energy, solar power, gas-fired power, and district heating. With a workforce of around 7,000 employees in over 20 countries, Statkraft is making waves in the energy market operations worldwide.
About Suomen Voima
Suomen Voima operates as a prominent Finnish power company with a production portfolio exceeding 1 TWh across the Nordic countries. This company follows the Mankala principle and is owned by a consortium of 17 municipal and privately owned power companies, many of which have rich histories dating back over a century in the domestic energy landscape.
Frequently Asked Questions
What is the duration of the power purchase agreement?
The power purchase agreement between Statkraft and Suomen Voima is set for a duration of 15 years, commencing in early 2025.
Which renewable energy sources are included in the PPA?
The PPA encompasses electricity generated from both the Nedre Bjurfors hydropower plant and the Björkhöjden wind farm.
How much energy will be produced annually under the PPA?
The agreement accounts for an estimated total annual volume of 100 GWh of electricity.
What benefits does this PPA bring to Suomen Voima?
This PPA enhances Suomen Voima’s energy portfolio by diversifying its sources and integrating Swedish operations into its existing Nordic reach.
Who are the key executives involved in this agreement?
Ketil Hovland from Statkraft and Pekka Saijonmaa from Suomen Voima are the key executives who are leading this PPA initiative.
