Friday 14 February 2020

Vattenfall inks 10-year solar PPA with Deutsche Telekom subsidiary

Vattenfall has signed a 10-year power purchase agreement (PPA) with Power & Air Solutions, a subsidiary of Deutsche Telekom, for renewable energy.

The power will come from a solar farm being built in Mecklenburg-Western Pomerania in Germany, which will have a total capacity of 60MW and is expected to start generating electricity in mid-2021.

Christine Lauber, Director Sales & Origination at Vattenfall said: “We are very pleased that with this agreement we are further accelerating the growing market for long-term electricity supply contracts for industrial customers in Germany. Vattenfall's goal is to enable fossil-free living within one generation. That also means supporting our customers in achieving their sustainability goals.”

She adds the further expansion of renewable energy projects in Germany in the future will not be supported by the government’s subsidy scheme “to the same extent anymore” but will be mainly based on PPAs.

Ms Mauber said: “Investors can use the PPA instrument to partially hedge their risks for new wind and solar parks and customers have direct, long term access to green electricity. In this way, they can contribute directly to the expansion of renewable energies.”