January 19, 2024
Sweden

Swedish wind farm PPA terminated

Anton Tigerstedt | 19 Jan 2024 | montelnews.com

The owners of the 71 MW Aldermyrberget wind farm in Sweden have terminated a 15-year power purchase agreement (PPA) with mining group Boliden due to economic issues.

“The deal has been terminated since mid-January,” Boliden spokesman Klas Nilsson told Montel. He said the group had previously rejected a plea from the wind farm to amend the PPA.

The companies will enter arbitration to decide how much compensation Boliden is entitled to after the wind farm failed to live up to its obligations under the agreement, which started in 2022.

The Aldermyrberget wind farm in northern Sweden is owned by investment funds LHI Group and EB-SIM. It suffered a net loss of SEK 144m (EUR 12.7m) in its last financial year ending 30 September, according to documents seen by Montel.

Under the PPA, the wind farm agreed to deliver a fixed volume, totalling 31.3 MW from 1 October to 31 March each year and 22.7 MW the rest of the time, at a fixed price.

However, Boliden was forced to buy more expensive electricity via the wholesale market during periods when wind production was too low to meet the agreed deliveries.

The wind farm lies close to the larger 650 MW Markbygden 1 project, whose owner filed for bankruptcy protection late last year after making significant losses on a PPA with Norwegian aluminium group Norsk Hydro.

URL to article:  https://www.wind-watch.org/news/2024/01/19/swedish-wind-farm-ppa-terminated/