EnBW and Energiekontor ink PPA for subsidy-free PV plant in Germany

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From pv magazine Germany.

In what could be a milestone for German post-FIT solar, EnBW Energie Baden-Württemberg AG and Energiekontor AG have signed a power purchase agreement for an 85 MW PV plant in northern Germany.

The companies said yesterday Energiekontor will build on the 120-hectare agricultural site and the plant could be commissioned next year.

It would be the first PPA of its kind in Germany. “The agreement stipulates that EnBW will purchase 100% of the electricity at a fixed price,” said yesterday’s joint statement. “Within the agreed contract period of 15 years, the two companies assume that the total amount of electricity produced will be around 1.3 TWh.”

In other parts of Europe, such as Portugal and Spain, long-term PPAs are already used to finance PV projects. Until now, the largest European PV project financed through a long-term PPA is the 175 MW Don Rodrigo plant, by BayWa r.e.

Breakthrough

“The market for PPAs has already seen strong growth internationally in recent years,” said Peter Heydecker, head of renewable energy trading at EnBW. “Our collaboration with Energiekontor is a key step in the implementation of solar power projects without state subsidies, including in Germany. Part of our trading strategy consists of continually adding to our product range and extending the time horizon on transactions. This also includes entering into long-term power agreements in Germany and other European markets.”

Peter Szabo, CEO of Energiekontor AG, said: “Now that Energiekontor has already set up the first subsidy-free wind farm in England, we will also be a pioneer in Germany and will realize the first large solar park outside the Renewable Energy Sources Act regime. With the PPA signed, we now have a sound basis to press ahead with developing the Marlow/Dettmannsdorf solar park project.”

Last fall, initial reports surfaced about Energiekontor’s plans to realize a large-scale solar park without subsidy in Germany but no PPA had been brokered.

EnBW last week announced a plan to build a 175 MW German PV plant without state subsidy. The project has been fully developed and preliminary construction preparation could follow this year. The plant will also be financed through a PPA.

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