ENGIE and Energiekontor conclude 15-year PPA for solar park in Germany
With its first long-term power purchase agreement for solar energy in Germany, ENGIE confirms its ambitions in the expansion of renewables on the German market. ENGIE and Energiekontor AG have concluded a power purchase agreement (PPA) for a solar park in Mecklenburg-Vorpommern.
The plant, with an installed capacity of 41.5 MW, is to go into operation in 2021 and produce around 45,600 megawatt hours of solar electricity per year, which corresponds to the supply of approximately 15,000 German households.
"Based on a collaborative approach, we have convinced Energiekontor of our range of services and are proud to partner with them towards carbon-neutral economy. With this long-term contract, both companies are making a major contribution to the market integration of renewable energies, which is to continue even in times of crisis," says Bernd Dinauer, Head of the German platform for ENGIE’s business unit “Global Energy Management”." As a reliable partner, we connect renewable energy producers and our customers engaging in the energy transition".
"Solar parks on PPA basis in Germany are the future. We are pleased to have found in ENGIE the third major supplier who is taking this new path with us and thus strengthening our pioneering role", says Peter Szabo, Chairman of the Board of Energiekontor AG, with satisfaction.
Within the framework of the agreed contract term of 15 years, the two companies are assuming a total produced electricity volume of around 684 gigawatt hours, which will be fed into the grid outside the EEG support regime. This will save approx. 400,000 t CO² emissions compared to the average German power generation.
ENGIE’s business unit “Global Energy Management” manages 10 GW of green energy in Europe's short-term markets, of which 2 GW is managed through long-term PPAs outside the statutory support framework. In Germany, ENGIE has a direct marketing portfolio of 3.4 GW, operates its own wind farms and is active in project development and repowering. Building on this experience, the company supports operators of wind turbines and solar parks in finding the best solution for their plants. In addition to long-term power purchase agreements, ENGIE also offers the purchase of plants whose EEG remuneration is expiring.
From a lager view, in Europe, ENGIE have recently signed a long-term agreement providing for the supply of more than 400 GWh/ year over 11 years to Spanish and Portuguese large industrials. PPAs are and will be a key component of the journey towards a carbon-free world, which is the highest priority of ENGIE, supporting clients in their energy transition.