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Avangrid and Statkraft Sign Second Virtual Power Purchase Agreement (VPPA) In the Past Nine Months

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Avangrid (NYSE: AGR) and Statkraft have signed a short-term Virtual Power Purchase Agreement (VPPA) for energy from Avangrid's 35 MW Casselman wind farm in Pennsylvania. This is their second VPPA in nine months, following a deal for Avangrid's 300 MW Streator Cayuga Ridge South wind farm in Illinois. The Casselman wind project, operational since 2007, consists of 23 wind turbines located near Meyersdale and Rockwood, about 60 miles southeast of Pittsburgh.

Avangrid CEO Pedro Azagra highlighted the deal as evidence of market interest in their productive merchant assets and their commitment to accelerating the clean energy transition. Patrick Pfeiffer, Managing Director of Statkraft's U.S. operations, emphasized the importance of power purchase agreements in driving the green transition forward.

Avangrid (NYSE: AGR) e Statkraft hanno firmato un accordo di acquisto virtuale di energia a breve termine (VPPA) per l'energia proveniente dal parco eolico di Casselman da 35 MW in Pennsylvania. Questo è il loro secondo VPPA in nove mesi, dopo un accordo per il parco eolico di Avangrid da 300 MW a Streator Cayuga Ridge South in Illinois. Il progetto eolico di Casselman, attivo dal 2007, è composto da 23 turbine eoliche situate vicino a Meyersdale e Rockwood, a circa 60 miglia a sud-est di Pittsburgh.

Il CEO di Avangrid, Pedro Azagra, ha evidenziato l'accordo come prova dell'interesse del mercato per i loro asset commerciali produttivi e il loro impegno nell'accelerare la transizione verso l'energia pulita. Patrick Pfeiffer, Direttore Generale delle operazioni statunitensi di Statkraft, ha sottolineato l'importanza degli accordi di acquisto di energia nel promuovere la transizione verde.

Avangrid (NYSE: AGR) y Statkraft han firmado un acuerdo de compra de energía virtual a corto plazo (VPPA) para la energía del parque eólico Casselman de 35 MW en Pensilvania. Este es su segundo VPPA en nueve meses, tras un acuerdo para el parque eólico de Avangrid de 300 MW en Streator Cayuga Ridge South en Illinois. El proyecto eólico de Casselman, operativo desde 2007, consta de 23 turbinas eólicas ubicadas cerca de Meyersdale y Rockwood, a unas 60 millas al sureste de Pittsburgh.

El CEO de Avangrid, Pedro Azagra, destacó el acuerdo como evidencia del interés del mercado en sus activos comerciales productivos y su compromiso con la aceleración de la transición hacia la energía limpia. Patrick Pfeiffer, Director General de las operaciones de Statkraft en EE. UU., enfatizó la importancia de los acuerdos de compra de energía para impulsar la transición verde.

Avangrid (NYSE: AGR)와 Statkraft가 펜실베이니아의 35MW Casselman 풍력 발전소에서 에너지를 위한 단기 가상 전력 구매 계약(VPPA)을 체결했습니다. 이는 9개월 만에 두 번째 VPPA로, 일리노이의 300MW Streator Cayuga Ridge South 풍력 발전소와의 계약에 이어 이루어졌습니다. Casselman 풍력 프로젝트는 2007년부터 운영되고 있으며, 23개의 풍력 터빈이 Meyersdale와 Rockwood 근처에 위치하고 있으며, 피츠버그에서 남동쪽으로 약 60마일 떨어져 있습니다.

Avangrid의 CEO인 Pedro Azagra는 이 계약을 그들의 생산적인 상업 자산에 대한 시장의 관심을 증명하는 것으로 강조하며, 청정 에너지 전환을 가속화하겠다는 약속을 내비쳤습니다. Statkraft의 미국 운영 관리 이사인 Patrick Pfeiffer는 에너지 구매 계약이 녹색 전환을 촉진하는 데 중요하다고 강조했습니다.

Avangrid (NYSE: AGR) et Statkraft ont signé un accord d'achat d'énergie virtuel à court terme (VPPA) pour l'énergie provenant du parc éolien de 35 MW Casselman en Pennsylvanie. Il s'agit de leur deuxième VPPA en neuf mois, après un accord pour le parc éolien de 300 MW d'Avangrid à Streator Cayuga Ridge South dans l'Illinois. Le projet éolien de Casselman, opérationnel depuis 2007, est composé de 23 éoliennes situées près de Meyersdale et Rockwood, à environ 60 miles au sud-est de Pittsburgh.

Le PDG d'Avangrid, Pedro Azagra, a mis en avant cet accord comme preuve de l'intérêt du marché pour leurs actifs commerciaux productifs et de leur engagement à accélérer la transition vers l'énergie propre. Patrick Pfeiffer, directeur général des opérations de Statkraft aux États-Unis, a souligné l'importance des accords d'achat d'électricité pour faire avancer la transition verte.

Avangrid (NYSE: AGR) und Statkraft haben einen kurzfristigen Virtual Power Purchase Agreement (VPPA) für Energie aus Avangrids 35 MW Windpark Casselman in Pennsylvania unterzeichnet. Dies ist ihr zweiter VPPA in neun Monaten, nach einem Vertrag für Avangrids 300 MW Windpark Streator Cayuga Ridge South in Illinois. Das Windprojekt Casselman, das seit 2007 in Betrieb ist, umfasst 23 Windturbinen, die sich in der Nähe von Meyersdale und Rockwood, etwa 60 Meilen südöstlich von Pittsburgh, befinden.

Der CEO von Avangrid, Pedro Azagra, hob den Vertrag als Beweis für das Marktinteresse an ihren produktiven Handelsgütern und ihr Engagement zur Beschleunigung des Übergangs zu sauberer Energie hervor. Patrick Pfeiffer, Geschäftsführer der US-Operationen von Statkraft, betonte die Bedeutung von Stromabnahmeverträgen, um die grüne Wende voranzutreiben.

Positive
  • Second VPPA signed between Avangrid and Statkraft in nine months, indicating a strengthening partnership
  • Demonstrates market interest in Avangrid's merchant assets
  • Aligns with Avangrid's sustainability goals and commitment to clean energy transition
  • Provides long-term certainty for Avangrid in a competitive market
Negative
  • None.

Insights

This VPPA deal between Avangrid and Statkraft, while positive, has a immediate financial impact. The agreement covers a relatively small 35 MW wind farm, representing only a fraction of Avangrid's $41 billion in assets. However, it's part of a strategic pattern of risk management and portfolio optimization. The short-term nature of the VPPA suggests Avangrid is capitalizing on current market conditions while maintaining flexibility. For investors, this demonstrates Avangrid's proactive approach to maximizing value from existing assets, which could contribute to steady cash flows. The deal also strengthens Avangrid's relationship with a major European player, potentially opening doors for future collaborations. While not a game-changer, it's a positive step in Avangrid's broader strategy to navigate the evolving energy market landscape.

This VPPA signifies a growing trend in the renewable energy sector. Short-term agreements are becoming more common as they offer flexibility in a rapidly changing market. The Casselman wind farm's location on a rehabilitated surface mine showcases the industry's ability to repurpose land, addressing environmental concerns while generating clean energy. With 23 turbines producing 35 MW, the farm's capacity factor appears to be around 30%, which is reasonable for an older wind project. The repeated deals between Avangrid and Statkraft indicate a maturing market for merchant renewable assets. This trend could lead to more efficient pricing and risk allocation in the sector, potentially accelerating the clean energy transition by making projects more financially viable and attractive to investors.

The repeated VPPAs between Avangrid and Statkraft highlight an evolving dynamic in the U.S. energy market. European players are increasingly seeking opportunities in the U.S. renewable sector, driven by favorable policies and market growth. This trend could lead to increased competition and innovation. The focus on short-term agreements suggests a shift in risk perception and market strategies. Companies are adapting to rapidly changing market conditions, preferring flexibility over long-term commitments. For Avangrid, this approach helps manage merchant risk in its portfolio while potentially capturing upside in a volatile market. The deal also underscores the growing importance of corporate PPAs in driving renewable energy adoption, a trend likely to continue as more companies commit to sustainability goals.

Statkraft to purchase energy from Avangrid’s 35 MW Casselman wind farm in Somerset County, Pennsylvania

SOMERSET COUNTY, Pa.--(BUSINESS WIRE)-- 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 short-term Virtual Power Purchase Agreement (VPPA) for energy from Avangrid’s 35 MW Casselman wind farm in Pennsylvania. This marks the second such deal between the two companies within the past nine months as they strengthen their growing relationship in the United States.

Earlier this year, Avangrid and Statkraft announced a short-term VPPA for Avangrid’s 300 MW Streator Cayuga Ridge South wind farm in Illinois. 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 happy to continue building our U.S. relationship with Statkraft, a clean energy leader that aligns with our sustainability goals at Avangrid,” said Pedro Azagra, Avangrid CEO. “This is further proof of an interested market for our productive merchant assets as we manage risk within our existing portfolio of projects. Additionally, partners like Statkraft are key to executing on our commitment to accelerating the clean energy transition.”

”Power purchase agreements are a key driver in moving the green transition forward”, said Patrick Pfeiffer, Managing Director of Statkraft's operations in the United States. “As the demand for clean energy grows in the US, so does the need for providers like Statkraft: We are proud to support our partner Avangrid with long-term certainty, needed to thrive in a competitive market.”

The Casselman wind project reached commercial operation in 2007 and is located about 60 miles southeast of Pittsburgh, near the towns of Meyersdale and Rockwood. The plant’s 23 wind turbines, with a combined capacity of 35 MW, are located on top of and near a rehabilitated surface mine, and bring clean energy jobs to the region.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $46 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 as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. 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 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, CA), the local team is also responsible for representing the company's global portfolio to US clients and driving strategic business development in the US.

Keaton Thomas

Keaton.thomas@avangrid.com

503-956-9621

Maike Hohlbaum

Maike.hohlbaum@statkraft.com

+49-151-275-46308

Source: AVANGRID, Inc.

FAQ

What is the capacity of Avangrid's Casselman wind farm in Pennsylvania?

Avangrid's Casselman wind farm in Pennsylvania has a capacity of 35 MW.

When did the Casselman wind project (AGR) begin commercial operation?

The Casselman wind project reached commercial operation in 2007.

How many wind turbines are in the Casselman wind project (AGR)?

The Casselman wind project consists of 23 wind turbines.

What was the previous VPPA between Avangrid (AGR) and Statkraft?

The previous VPPA was for Avangrid's 300 MW Streator Cayuga Ridge South wind farm in Illinois.

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