Business

Irish energy trading firm seals long-term power deals for Derry wind farms

The long term power purchase agreements concern wind farms at Evishagaran and Craiggore, in Co Derry.

IRISH energy trading and services firm ElectroRoute has entered into two long term power purchase agreements (PPAs) for wind farms in Co Derry.

The wind farms at Evishagaran, near Dungiven, and Craiggore, near Garvagh, are due to be completed later this year. They are being developed by RES for Italian energy company ERG.

Dublin-based ElectroRoute, which is part of the Japanese Mitsubishi Corporation, said the agreement is the first to be announced on the island of Ireland whereby a trading entity is putting in place a long term PPA with a developer without any support from a government subsidy scheme.

The Irish company said similar forms of market-based PPAs are expected to have a significant role in the ramping up of renewable energy projects across the island, and meeting ambitious renewable targets.

It's expected the two Derry wind farms will produce 250GWh of energy per year, capable of producing enough electricity to power approximately 71,500 homes annually.

ElectroRoute said it will provide the physical trading and route to market services for the sites by ensuring 24/7 access to the market.

The firm's chief executive, Ronan Doherty, said the agreements with ERG which represent a major turning point for the company.

“Our vision is to make ‘net zero' a reality and we are committed to supporting the decarbonisation of the energy sector on the island of Ireland,” he said.

“To this end, we recognise the importance of providing independent, long term and bankable power purchase agreements to renewable and battery storage assets across all of our markets.

“We are targeting growth in this area with particular focus in Ireland, the UK, Spain and Italy,” he continued.

“The potential market for renewable PPAs in Ireland is significant and growing and we aim to engage proactively with corporate buyers to ensure our solutions continue to evolve and support a clean energy future.”

Enjoy reading the Irish News?

Subscribe now to get full access