SmartestEnergy, a renewables-focused energy company, has secured a long-term supply agreement with Bute Energy for clean electricity generated from the Twyn Hywel Energy Park in South Wales. The deal, a 20-year contract for difference (CfD) power purchase agreement (PPA), marks a significant step in the UK's renewable energy landscape.
Project Details
Located on the border of Caerphilly and Rhondda Cynon Taf, the Twyn Hywel Energy Park will consist of 14 wind turbines with a total installed capacity of 93.4 megawatts (MW). At full capacity, this is enough to meet the annual electricity needs of approximately 81,000 households. The project was awarded a CfD in the UK Government's allocation round seven (AR7) and is expected to reach commercial operations by late next year.
How CfDs Work
Under the CfD mechanism, renewable energy developers bid for a guaranteed price per megawatt hour (MWh) of electricity generated. If the market price falls below this guaranteed rate, the government provides subsidies to top up payments. Conversely, if the market price is higher, developers must pay back the difference to the government. This system provides financial certainty for large-scale renewable projects.
Strategic Partnership
As a transmission-connected onshore wind asset, Twyn Hywel represents a significant addition to the UK's renewable energy infrastructure. SmartestEnergy's expertise in transmission-connected wind assets and competitive pricing were key factors in its selection as the route-to-market partner. The selection followed a tender process in which Bute Energy was supported by investment partner Copenhagen Infrastructure Partners (CIP).
Beyond energy generation, the project is expected to create around 300 jobs during construction and operation.
Executive Comments
Will Russell, Business Development Manager at SmartestEnergy, said: "Wales is at a defining moment in its energy transition and SmartestEnergy is proud to be part of it. Working with Bute Energy on Twyn Hywel Energy Park to provide a long-term route to market for a project of this scale reflects our focus on getting the commercial foundations right, so that projects like this can deliver lasting value for the UK energy system."
Sid Anverali, Project Director at Bute Energy, added: "We're proud to deliver this project with SmartestEnergy, and we intend to make it count, not just in megawatts but in skills, jobs, and long-term investment for the communities around Caerphilly and Rhondda Cynon Taf. We knew we needed a long-term partner who could go beyond being a capable counterparty and one that shares our ambition for the next two decades and beyond. SmartestEnergy brings exactly that in deep expertise, genuine flexibility, and a team that understands what a project of this scale truly demands."
Broader Context
The Twyn Hywel project is part of Bute Energy's wider £3 billion Welsh onshore wind investment programme. This deal further strengthens SmartestEnergy's growing presence in the CfD market and transmission-connected renewable energy space.
