The developers of the world’s biggest tidal array in Scotland have signed a multi-million pound deal to sell electricity generated by the project.
MeyGen’s 10-year Power Purchase Agreement (PPA) with independent energy firm SmartestEnergy could be worth more than £50 million over the lifetime of the project.
Under the first phase of the project in Pentland Firth, the company will install four 1.5MW turbines on the seabed but it could eventually include up to 269 turbines. That would generate enough electricity for almost 200,000 homes.
The PPA with the energy company will provide revenues from power generated and exported to the grid under the first phase through to 2025.
Dan Pearson, Chief Executive of MeyGen said: “The agreement with SmartestEnergy will secure the long-term revenues which will demonstrate the commercial viability of the project and also highlight the wider potential of tidal stream generation to become a significant industry.”
Construction of the project is expected to start later this year.
Last month Atlantis Resources, which own MeyGen, said it secured £50 million of funding for the project.