OSLO, April 14 (Reuters) - Estonian utility Eesti Energia and Danish project developer European Energy have signed a 10-year power purchase agreement (PPA) for deliveries from wind farms in Lithuania, they said on Wednesday.
Starting in 2023, the agreement covers total deliveries of 3.8 terawatt-hours (TWh) over the ten-year period, the firms said.
The agreement secured renewable energy equivalent to half of Estonia’s annual electricity consumption and was the largest PPA signed in the Baltics to date, Eesti Energia said.
The electricity will be used in the Baltic states and come from three wind farms with an expected installed capacity of 190 megawatts (MW) being developed by European Energy in Lithuania.
Power purchase agreements are an increasingly common financing and marketing tool for renewable energy installations. They typically involve the owner of an asset selling their power to a third party or directly to a consumer.
Reporting by Nora Buli; Editing by Kirsten Donovan