Minesto renews PPA with Faroese utility Sev

Minesto AB (STO:MINEST) announced on Monday an update and renewal of its existing tidal power purchase agreement (PPA) with Faroese electric utility Sev to adjust the electricity price-level and extend its term for two additional years.

The Swedish marine energy developer signed its original PPA with Sev in early 2020, covering up to 2.2 MW of installed tidal power generating capacity.

The new contract includes an adjustment of the price-level to denote the total system value of tidal energy in the future energy mix in the Faroe Islands which is targeted to become 100% renewable by 2030. The amended PPA covers the capacity of Minesto’s three tidal power plants in Vestmanna, the company said.

”The updated PPA is on a price-level that underlines the value of tidal energy in energy mix in the Faroe Islands,” said Dr Martin Edlund, CEO of Minesto.

In February 2024, Minesto said it had set out a scaled-up roadmap for a 200-MW tidal energy buildout in the Faroe Islands in response to growing renewable energy demands.

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