Corporate renewable power purchase agreements (PPAs), are on the rise in Europe as the continent grows closer to a mature renewables market.
The trend is being followed by old and new players in the corporate space, with many projects not requiring government subsidisation thanks to guaranteed offtake agreements preceding construction.
The first week of December saw the announcement of three European solar PPAs by Enerparc, BP and Voltalia for their projects in Germany, Sweden and Spain, and France, respectively.
Statkfraft Norway’s subsidiary Statkraft Germany has signed a 12-year PPA with large-scale solar power plant developer Enerparc for five of its solar parks with a combined capacity of around 52 MW. Statkraft will purchase just shy of 600 GWh of clean power from these projects from May 2020, with Enerparc subsidiary Sunnic undertaking short-term marketing for any available capacity.
With construction currently underway in Bavaria, all three projects won’t receive EEG feed-in tariffs – according to Statkraft, the PPA provides the German company with the necessary planning security to implement a project of this size. Once commissioning is completed, expected in the second quarter of 2020, Statkraft will supply the same for structured power supply of its industrial consumers.
“The realisation of this project is groundbreaking – both for Enerparc and for the expansion of renewable energy in Germany,” said Enerparc COO Stefan Müller. “With these solar parks with an output of 52 MWp, we are realizing subsidy-free projects on a multi-megawatt scale for the first time and giving the go-ahead for many other future projects in this area“
Statkraft is not new to corporate PPAs, having signed several in recent years, including as it has signed several in recent past, including for a 50 MW Spanish solar project of Aventron for five years.
Oil and gas major BP has signed a corporate PPA with Amazon to supply renewable power to Amazon Web Services’ (AWS) from a 50MW solar plant in Spain and a 122MW onshore wind farm in Sweden, with plans to more than double that capacity. The Spanish solar capacity is expected to come online in 2021. Amazon will use the capacity to power data centres and the AWS cloud platform.
BP’s stake in renewable subsidiary Lightsource BP was announced to have increased to 50%, indicating the company’s drive to transition to greater sustainability.
For its AWS operations and European fulfillment centers, Amazon recently announced signing for supply from its first solar power project in Spain with 149 MW capacity.