Ocean energy developer Minesto and Faroese utility company Sev have renewed and updated their power purchase agreement (PPA), highlighting the importance of tidal energy in the Faroe Islands’ move towards a 100% renewable energy system.
Originally signed in 2020, the PPA has been extended for another two years following approval from the Faroese Energy Agency (Orka). The agreement includes an adjusted electricity price to better reflect the overall value of tidal energy.
The renewed PPA pertains to the capacity of three tidal power plants located in Vestmanna. This extension continues the world’s first off-taker relationship for energy produced by Minesto’s tidal energy technology.
Dr. Martin Edlund, CEO of Minesto, commented: “The updated PPA is on a price-level that underlines the value of tidal energy in energy mix in the Faroe Islands.”
Terji Nielsen, Head of R&D at Sev, added: “We are pleased to sign a renewed power purchase agreement with Minesto at this point. We are very hopeful that tidal energy will play a vital role in the future energy mix in the Faroe Islands and in our efforts to reach 100% sustainable electricity generation by 2030.”
Last month, Minesto announced it had reached a significant milestone with its tidal kite Dragon 12, marking three months of uninterrupted testing since its installation in February 2024. The Dragon 12 has been reliably connected to the grid and is performing as anticipated at its site in Vestmanna, Faroe Islands. This period also sees the operation of an array of tidal kites, including the 1.2 MW Dragon 12 and a 100kW Dragon 4, providing crucial production data for future array expansions.
