Wpd Finland trusts in long-term buyers

Wpd Finland is building its operations on long-term power purchase agreements (PPAs). It follows the same long-term policy in the technical and financial services agreements for wind farms – agreements that cover the entire service lifetimes of the farms.

Long-term PPAs are particularly important when Wpd Finland Oy builds wind farms. Under these agreements, either one large electricity user or a bigger group of smaller users agrees to buy a certain amount of electricity at the contractual price for the stated period of time.

“Wpd has made this type of agreement for its three most recent wind farm projects. One of the wind farms is already complete. The 60-megawatt wind farm that began operating in Kannus in the first half of the year is covered by a PPA with search engine company Google. A power purchase agreement has been made with UPM-Kymmene Corporation concerning the Karhunnevankangas wind farm, which is currently under construction in Pyhäjoki,” says Heikki Peltomaa, the company’s CEO.

Wpd Finland began operating in 2007 as part of Wpd Group, a Germany company that operates or owns well over 200 wind farms in various parts of Europe. Wpd Finland’s business is based on developing, financing, constructing, operating and owning onshore and offshore wind farms in Finland.

Life cycle service package includes production management

Wpd makes a technical and financial services agreement with Wpd Windmanager Suomi Oy to cover the entire service life of each of the wind farms it builds. This also safeguards the amount and quality of wind power generation.

“Windmanager checks that the turbine supplier is operating the wind farm correctly and that the wind farm is outputting the right about of electricity in light of the wind conditions. At the same time, it also monitors compliance with the maintenance programmes for the wind farms and individual wind turbines, as well as the time spent on maintenance.”

Wpd is responsible for wind power generation throughout the service life of the wind farm, even if the wind farm is sold on to a new owner. The company’s representative is also available throughout the operating period, which runs to several years.

The cooperation between Fingrid and Wpd focuses on technical advice and questions related to connecting wind power to the main grid.

Ten new wind farms

Next year, Wpd will initiate a wind farm project based on a PPA with Kesko. The agreement will enable K Group to significantly increase the amount of renewable electricity it produces and procure well over 40 gigawatt-hours of wind power per year.

Peltomaa says that Wpd Finland is also negotiating similar agreements with several other companies. In total, ten wind farm projects are being planned, and the company intends to continue actively developing them.

“Hopefully, we will soon advance to construction. Over the longer term, I also believe that the construction of offshore wind farms will take off in Finland. When this happens, the investments will run into the billions for each project,” says Peltomaa.

Sitra, a think tank, also believes in the potential of offshore wind power, highlighting this area in its rescue package for the coronavirus crisis this year.

 

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