Avangrid and Statkraft Establish U.S. Relationship with Virtual Power Purchase Agreement (VPPA)
April 08 2024 - 11:02AM
Business Wire
Statkraft to receive Renewable Energy
Certificates (RECs) from Avangrid’s 300 MW Streator Cayuga Ridge
South Wind Farm
VPPAs are financial agreements for RECs tied to
the amount of renewable energy produced by the facility
Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company
and member of the Iberdrola Group, and Statkraft, Europe’s largest
producer of renewable energy, today announced the signing of a
Virtual Power Purchase Agreement (VPPA), establishing a new
relationship between the two companies in the United States.
Statkraft will receive Renewable Energy Certificates (RECs) from
Avangrid’s 300 MW Streator Cayuga Ridge South Wind Farm in Illinois
with this short term VPPA.
This is the first agreement between the two companies in the
U.S. market. Statkraft and Iberdrola, S.A., Avangrid’s parent
company, have a Power Purchase Agreement (PPA) in place for energy
produced at Iberdrola’s Korytnica II wind farm in Poland.
“We are grateful to partner with organizations like Statkraft
that share our commitment to accelerating a clean energy
transition. Climate change is a defining issue of our time and it
is vital that we work together to meet the moment,” said Pedro
Azagra, Avangrid CEO. “Agreements like this are a good example of
our active approach to managing merchant risk at Avangrid’s
existing renewable energy facilities, while ensuring clean energy
continues to flow to the communities where it’s needed most.”
"This VPPA marks a significant milestone in the establishment
and expansion of our PPA business in the United States”, says
Patrick Pfeiffer, Head of Statkraft US. “We are proud to partner
with Avangrid as a continuation of our successful relationship with
Iberdrola in Europe. As we work toward a global energy transition,
it's critical to think beyond borders and connect internationally.
Together with our valued partners, we can renew the way the world
is powered.”
With more than 8.7 GW of installed capacity, Avangrid is one of
the largest renewable energy operators in the U.S.
About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be
the leading sustainable energy company in the United States.
Headquartered in Orange, CT with approximately $44 billion in
assets and operations in 24 U.S. states, Avangrid has two primary
lines of business: networks and renewables. Through its networks
business, Avangrid owns and operates eight electric and natural gas
utilities, serving more than 3.3 million customers in New York and
New England. Through its renewables business, Avangrid owns and
operates a portfolio of renewable energy generation facilities
across the United States. Avangrid employs approximately 8,000
people and has been recognized by JUST Capital in 2021, 2022, 2023
and 2024 as one of the JUST 100 companies – a ranking of America’s
best corporate citizens. In 2024, Avangrid ranked first among
utilities and 12 overall. The company supports the U.N.’s
Sustainable Development Goals and was named among the World’s Most
Ethical Companies in 2024 for the sixth consecutive year by the
Ethisphere Institute. Avangrid is a member of the group of
companies controlled by Iberdrola, S.A. For more information, visit
www.avangrid.com.
About Statkraft: Statkraft is a leading company in
hydropower internationally and Europe’s largest generator of
renewable energy. The Group produces hydropower, wind power, solar
power, gas-fired power and supplies district heating. Statkraft is
a global company in energy market operations. Statkraft has 5,700
employees in 21 countries.
About Statkraft in the US: Statkraft, Norway's
state-owned renewable energy company, has been operating in the US
renewable energy commodity markets since 2015. The company is an
active participant in the US carbon, renewable energy and PPA
markets, transacting with both renewable energy producers and
consumers. From its two offices (Stamford, CT and San Francisco),
the local team is also responsible for representing the company's
global portfolio to US clients and driving strategic business
development strategies in the US.
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version on businesswire.com: https://www.businesswire.com/news/home/20240408206400/en/
Keaton Thomas Keaton.thomas@avangrid.com 503-956-9621
Maike Hohlbaum Maike.Hohlbaum@statkraft.com 0049-151 275 463
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