Press Releases
04/08/2024
Avangrid and Statkraft Establish U.S. Relationship with Virtual Power Purchase Agreement (VPPA)
Avangrid and Statkraft Establish U.S. Relationship with Virtual Power Purchase Agreement (VPPA)
Statkraft to receive Renewable Energy Certificates (RECs) from Avangrid’s 300 MW Streator Cayuga Ridge South Wind Farm
VPPAs are financial agreements for RECs tied to the amount of renewable energy produced by the facility
PORTLAND, OR — April 8, 2024 — 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 Virtual Power Purchase Agreement (VPPA), establishing a new relationship between the two companies in the United States.
Statkraft will receive Renewable Energy Certificates (RECs) from Avangrid’s 300 MW Streator Cayuga Ridge South Wind Farm in Illinois with this short term VPPA.
This is the first agreement between the two companies in the U.S. market. 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 grateful to partner with organizations like Statkraft that share our commitment to accelerating a clean energy transition. Climate change is a defining issue of our time and it is vital that we work together to meet the moment,” said Pedro Azagra, Avangrid CEO. “Agreements like this are a good example of our active approach to managing merchant risk at Avangrid’s existing renewable energy facilities, while ensuring clean energy continues to flow to the communities where it’s needed most.”
"This VPPA marks a significant milestone in the establishment and expansion of our PPA business in the United States”, says Patrick Pfeiffer, Head of Statkraft US. “We are proud to partner with Avangrid as a continuation of our successful relationship with Iberdrola in Europe. As we work toward a global energy transition, it's critical to think beyond borders and connect internationally. Together with our valued partners, we can renew the way the world is powered.”
With more than 8.7 GW of installed capacity, Avangrid is one of the largest renewable energy operators in the U.S.
About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $44 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 in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. 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 Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.
