Renewable energy company BayWa r.e. will issue a tender for corporate power purchase agreements (CPPAs), totalling 10 terawatt-hours over 10-year contracts.
Touted as Europe’s first-ever tender initiated by a developer, it will take place in Autumn 2022 and will see the project’s total output shared with several off-takers.
The energy will come from a portfolio of renewable projects located in Germany and Spain.
Benedikt Ortmann, global director of solar projects at BayWa r.e. commented in a statement: “We want to make green electricity as accessible as possible. Our PPA tender is promoting the energy transition for commercial and industrial customers, which are on the lookout for affordable and reliable green energy supply. At BayWa r.e., we are playing an integral role in this transition.”
According to BayWa r.e. there is a growing corporate demand for renewable electricity due to climate change commitments, investor and customer expectations and the current energy crisis in Europe. Furthermore, there is a growing need for long term PPAs to ensure renewables projects are developed while the impact of energy price spikes is avoided.
An example of such a PPA is the recent contract signed between BayWa r.e. and food and beverage company Nestlé, for a 10-year supply of solar power from a project in central Spain.
Speaking on this announcement, Daniel Parsons, BayWa r.e.’s head of PPA, said: “This is truly an unprecedented time for energy markets across Europe. Corporates are facing price spikes and increasing uncertainty and at the same time they want to play an active role in tackling the climate crisis.
“Renewable energy is the only answer, and long-term PPA contracts are a key tool to achieve reliable electricity supply and to enable more renewable energy. It’s brilliant that we’re now able to introduce a tender process to our PPAs in Spain and Germany.”
The tender’s terms and principles are currently being finalised by BayWa r.e. and will be shared later this year.
