Hydro Energi AS has agreed to a settlement regarding a long-term power purchase agreement (PPA) with Markbygden Ett AB connected to the 653 MW Markbygden onshore wind park, located west of Piteå in Sweden.
Hydro Energi AS entered a long-term PPA with Markbygden Ett AB in 2017, securing an annual baseload supply of 1.65 TWh from 2021 to 2039. While the park’s yearly production was initially estimated at 2.2 TWh, "significantly lower-than-expected production levels" have led to financial difficulties for Markbygden Ett AB over the past few years.
The wind park stopped supplying power to Hydro on February 6, 2023 and initiated a company reorganization in November 2023. By Q3 of 2024, undelivered power since February 2023 reached 2.5 TWh. Under the approved plan, Hydro is set to receive up to EUR 248 million (US$ 268.6 million) as a settlement for the ongoing dispute regarding non-performance under the PPA and as compensation for the voluntary termination of the agreement. Pending certain closing conditions, the plan is anticipated to take effect in November 2024.
