MeyGen confirms 10 year deal to sell its turbine energy.
Published 17 Sep 2014MeyGen have confirmed their signing of a 10 year contract with SmartestEnergy to sell the power generated by their project in the Pentland Firth.
The multi-million pound deal has secured the developers a contract to sell electricity generated by its planned tidal energy scheme, to be constructed in the Inner Sound of the Pentland Firth off the Caithness coast. MeyGen confirmed the Power Purchase Agreement with SmartestEnergy will last for 10 years, saying the agreement could be worth upwards of £50m over its lifetime. Since its establishment in 2001, SmartestEnergy has grown to become Britain’s leading purchaser of energy generated by the independent sector. The firm are also UK licensed business electricity supplier to large industrial and commercial organisations such as Marks and Spencer and Toyota Motor Manufacturing.
The first phase of the development will see four 1.5MW turbines installed on the seabed, employing the services of Caithness firm JGC Engineering. MeyGen advise that the scheme could eventually involve up to 269 turbines, with devices beginning to be installed over the next two years.
Revenue through the partnership with SmartestEnergy will be provided by the sale of power generated and exported to the grid from the project’s first phase until 2025.
Atlantis Resources, owners of MeyGen, recently announced a funding package of £50m for the project from a range of backers including the Scottish and UK Governments, the Crown Estate and Highlands and Islands Enterprise (HIE).
Dan Pearson, MeyGen Chief Executive said of the procurement "The agreement with SmartestEnergy will secure the long-term revenues which will demonstrate the commercial viability of the project and also highlight the wider potential of tidal stream generation to become a significant industry," describing the Power Purchase Agreement as ‘an important step forward’ for the company and its backers.