Aquila European Renewables Income (AERS) has announced that the first project revenue has been recorded from “The Rock”, which is expected to be one of the largest wind farms in Europe, with 72 turbines and a 400 MW capacity. The project is expected to provide 1.3 TWh renewable electricity annually, equivalent to approximately 412 kt of CO2 avoidance per annum. AERS acquired a 13.7% interest in The Rock in June 2020.
Undergoing energisation
AERS announced on 10 December 2021 that construction of The Rock had been completed, with all 72 turbines fully erected and, since then, works have been focused on the energisation of the turbines. AERS says that a number of the turbines are already energised and, as a result, are producing electricity and revenue. Under the existing project contracts, The Rock project company is entitled to 50% of any revenue generated (AERS look-through share: approximately 6.9%) from 1 January 2022 until the commercial operation date.
Winter has delayed the commercial operations date
The commercial operations date for the project is now expected to occur in Q2 2022 (previously, Q1 2022), which has largely been driven by severe winter conditions, including low temperatures, heavy snowfall and high wind speeds (exceeding 40m/s in some instances) which have affected ongoing works on the site. Due to adverse weather conditions, the site has partly been closed in January and February, slowing down the process. In response to the weather, the commissioning teams are utilising specialised snow vehicles and have also committed additional resources to assist with snow removal. The work has resumed, but progress remains subject to the ongoing weather conditions. AERS’s adviser says that it does not expect any material adverse impact on the project company’s financial position or ability to service the Power Purchase Agreement (PPA) as a result of the revised commercial operations date.
Once in operation, the majority of the power from The Rock will go to the nearby Alcoa aluminum plant, a local cornerstone employer, which has signed a 15-year PPA. AERS says that this guarantees opportunities for growth in the region and contributes to safeguarding hundreds of Norwegian jobs.