BayWa r.e. and BT Group sign a Virtual PPA for an onshore wind farm in Scotland

BayWa r.e., a global company specializing in renewable energy, and BT Group, the UK’s leading telecommunications and network provider, have signed a Virtual Power Purchase Agreement (VPPA) for the Dalquhandy wind farm , in South Lanarkshire, Scotland. This is one of the first deals of its kind to take place in the UK.

Under the terms of the VPPA, BT Group will buy 80% of Dalquhandy’s production, which is approximately 90GWh per year, together with the associated Renewable Guarantees of Origin (GdOs), at a fixed price for 10 years.

The PPA negotiations began in March 2022 and the agreement was established in June, before the deadline for submitting offers for the Contracts for Difference (CfD) auction.

This is the second corporate PPA between BayWa r.e. and BT Group. Back in 2014, both companies signed one of the first corporate PPAs in the UK for the construction of the 30MW Stroupster wind farm in the Scottish Highlands.

The Dalquhandy Wind Farm is being developed by BayWa r.e. UK. The 42 MW project consists of 10 Vestas V136 wind turbines, located in a former coal mine near Coalburn, in South Lanarkshire, in the south of Scotland. It will be able to produce enough green energy to supply some 34,000 homes. The wind farm is currently under construction and is expected to go into operation in the quarter of 2022.