Amazon Web Services (Amazon) has signed a Power Purchase Agreement (PPA) with energy developer Statkraft for 36 MW of electricity from the Mossy Hill onshore wind farm near Lerwick in Shetland. The wind farm is expected to become operational in November 2030 and will generate enough renewable electricity to supply the equivalent of more than 57,000 homes annually.
According to a press release, the agreement adds to Amazon’s renewable energy portfolio in the UK, which includes more than 50 projects. The projects will have more than 1 GW of combined carbon free energy capacity once fully operational, equivalent to the annual electricity use of over 1.3 million UK households.
John Boumphrey, Amazon UK and Ireland Country Manager, said, “Our latest project in the Shetland Islands builds on years of investment in renewable energy across the UK, from the Shetland Islands to the coasts of England, our renewable energy investments are creating real jobs and powering local communities. Last year we announced our plan to invest £40 billion in the UK by 2027, and the transition to a lower carbon economy is a part of how we’re putting that commitment to work.”
Amazon’s other renewable energy agreements in Scotland include the Moray West offshore wind farm in the Moray Firth and the Chirmorie Wind Farm in South Ayrshire. Chirmorie, developed by egg Power, has a planned capacity of 90 MW.
“Signing the UK’s largest ever onshore PPA is a landmark moment, not just for egg Power, but for the UK renewable energy sector as a whole,” said Ilesh Patel, CEO, egg Power, Liberty Global. “Our mission is to deliver renewable energy to meet the fast growing demand for affordable, secure, sustainable electricity from telecoms and digital infrastructure companies. There are large numbers of projects that lack the customers and funding to move them from a vision to reality and we are proud to collaborate with customers like Amazon to turn them into infrastructure as part of the UK’s transition to carbon free energy.”
The agreement provides the certainty needed to move the Mossy Hill project forward.
Kevin O’Donovan, Statkraft’s UK and Ireland Country Manager, said, “We’re pleased to have agreed a partnership with Amazon for our Mossy Hill Wind Farm in Shetland, which gives us the certainty to move the project forward. Shetland has a proud history of energy production, and as the country shifts towards more homegrown renewable power, we’re proud to be playing our part in that transition.”
An independent analysis by Frontier Economics found that its low carbon investments in the UK totalled more than £3 billion (US$ 4 billion) between 2021 and 2025. The analysis also estimated that the investments generated up to £2 billion (US$ 2.6 billion) in gross value added for the UK economy.
These UK renewable energy agreements are intended to add new carbon free generation to the national electricity grid. Amazon’s UK energy investments form part of a wider European portfolio, which includes 260 carbon free energy projects with 10 GW of capacity.