Avangrid inks virtual power purchase agreement with Statkraft

Avangrid has struck a deal with Statkraft, Europe’s largest producer of renewable energy, on a virtual power purchase agreement (VPPA).

Through this agreement, Statkraft will receive renewable energy certificates (RECs) from Avangrid’s 300 MW Streator Cayuga Ridge South Wind Farm in Illinois.

While this is the first agreement between the two companies in the United States, Statkraft and Iberdrola Group, 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,” Pedro Azagra, Avangrid CEO said. “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.”

With more than 8.7 GW of installed capacity, Avangrid is one of the largest renewable energy operators in the United States.

“This VPPA marks a significant milestone in the establishment and expansion of our PPA business in the United States”, Patrick Pfeiffer, head of Statkraft US, said. “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.”