Renewable energy leader BayWa r.e. will issue Europe’s first-ever tender initiated by a developer for corporate power purchase agreements (CPPA), totalling 10 terawatt-hours over 10-year contracts. The energy will come from a portfolio of renewable projects located in Germany and Spain.
The tender will take place in Autumn 2022 and will see the project’s total output shared with several off-takers, each looking to meet their energy demands with a reliable renewable energy source. The tender’s terms and principles are currently being finalised and further information will be shared by BayWa r.e. later this year.
Reliable, accessible renewable energy in the face of climate and energy crisis
BayWa r.e. is witnessing a very high corporate demand for renewable electricity globally, particularly in the EMEA region, driven by intensifying sustainability commitments in the face of climate change and customer and investor expectations and Europe’s unprecedented ongoing energy crisis.
Long-term PPA deals provide companies with a stable energy supply that protects against future energy price increases while also enabling the development of new renewable energy projects. Both benefits make corporate PPAs a key part of actively driving the renewable energy transition forward.
BayWa r.e. is a well-established PPA and energy solutions provider in Europe, having previously signed agreements across the continent with leading global corporations, including AB InBev, Nestlé and HeidelbergCement.
Speaking on this announcement was Daniel Parsons, BayWa r.e.’s Head of PPA: “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.”
Also commenting was Benedikt Ortmann, Global Director of Solar Projects at BayWa r.e.: “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.”
Image source: Courtesy of BayWa r.e.
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