BT to use wind power to support operations in £440m npower deals

BT has signed long-term power purchase agreements (PPAs) worth £440 million with three wind farms in Scotland, Wales and Lancashire.

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BT has signed long-term power purchase agreements (PPAs) worth £440 million with three wind farms in Scotland, Wales and Lancashire.

The deals will secure more than 100 Megawatts (MW) of renewable energy to help power BT's UK operations.

The energy will be supplied from the 48-turbine Fallago Rig wind farm located 35km south-east of Edinburgh in the Scottish Borders, the new Heysham South Wind Farm in Lancashire and the nine-turbine Mynydd Bwllfa Wind farm in South Wales.

BT is purchasing 50 percent of Fallago Rig’s output, enough to match the power consumption of its entire Scottish operations, in a deal worth around £300 million over the next two decades.

BT's 15-year, £100 million agreement with Mynydd Bwllfa will provide enough electricity to match around 50 percent of its power needs in Wales. The firm has also secured a 15-year deal to purchase electricity generated by the new Heysham South Wind Farm in Lancashire, worth around £40 million.

The PPAs with BT are supporting the construction of both the Welsh and Lancashire sites. Pennant Walters is currently building Mynydd Bwllfa, near Hirwaun, whilst developers The Banks Group will start construction of the three-turbine Heysham South wind farm, near Lancaster, over the next few months.

BT is a major consumer of electricity in the UK, using around 2 Terawatt hours (TWh) in 2013/14. It says it has reduced the energy needed to run its business for five consecutive years, saving more than £131 million in energy costs.

Rob Williams, BT’s head of energy supply, said: “These large-scale, long term agreements are a vote of confidence in UK renewable energy and support BT’s continued commitment to securing all its electricity from renewable sources. They not only give us long term price certainty but enable us to support local economies in which we operate."

BT’s sole supplier of renewable energy, npower, has worked closely with the company on all three projects, developing a new supply process in Scotland to deliver power to BT, and ensure its electricity consumption is matched by equivalent volumes from Fallago Rig. BT has purchased renewable energy from npower since 2000.

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