From ReCharge, November 13:
653MW Markbygden Ett sub-project reportedly in difficulties due to unprofitable PPA with aluminium giant Hydro
The 653MW Markbygden Ett wind farm – a sub-project of Europe’s largest wind complex Markbygden – has filed for restructuring proceedings with the Umeå district court in northern Sweden after getting into financial difficulties, apparently due to an unprofitable power purchase agreement (PPA) with Norwegian aluminium giant Hydro.
The wind farm operator closed a corporate PPA with Hydro in 2017, which then was claimed to be the world’s largest green power offtake agreement. Under the terms of the PPA, Markbygden Ett after being commissioned in 2019 is slated to supply a fixed amount of electricity to the power unit of the Norwegian metals group for 19 years.
The sub-project at the time the PPA was closed with Norsk Hydro, as it was then known, was owned by Macquarie’s Green Investment Group and GE Financial Services, which between them had formed a 50-50 joint venture to raise around €800m to advance the project. The partners in 2018 sold 75% of it to the European subsidiary of Chinese state-run power giant CGN (which calls the project North Pole Wind)....
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