German solar project developer Energiekontor has secured a 15-year power purchase agreement (PPA) from French energy company Engie.
The electricity will be supplied by a 41.5 MW solar park Energiekontor intends to build in the Mecklenburg-Vorpommern region of northeastern Germany by next year.
The two parties to the agreement did not disclose the solar power purchase price. The unsubsidized solar plant is expected to generate around 45.6 GWh of electricity annually – enough to supply around 15,000 households.
The deal marks Energiekontor’s third unsubsidized PPA, following agreements to supply German energy companies Innogy and EnBW last year.
“The future in Germany belongs to PPA-based solar parks,” said Energiekontor CEO Peter Szabo. “We are happy to have found Engie, the third major supplier who is taking this new path with us and thus strengthening our pioneering role.”
Bernd Dinauer, head of the Engie global energy markets business platform for Germany, said: “With this long-term contract, both companies are making a major contribution to the market integration of renewable energies, which should continue even in times of crisis.”
Energy industry management consultancy Enervis recently told pv magazine the Covid-19pandemic has clouded the prospects of the unsubsidized PPA market in Europe. “With the current [energy] spot price level on the European markets, there is hardly a business model for projects without [subsidy] funding,” said Enervis consultant Tim Steinert. “If you compare the current wholesale [energy] prices with the full costs of the projects, you will not see a market on which a subsidy-free business model still works under the current conditions.”