05.05.2021 - Axpo is expanding cooperation with one of its long-standing customers in Poland. The company’s Warsaw-headquartered subsidiary has signed two power purchase agreements (PPAs) with Energix Group, one of Israel’s largest renewable energy companies. Under the agreement, Axpo Polska will buy the full output generated by two new Polish wind farms owned by Energix.
Focused on developing wind farms, Energix Group is one of the most active international renewable energy investors in Poland. Axpo Polska has been working with Energix since it entered the Polish market more than six years ago. The two companies previously signed PPAs for the 106 MW Banie wind farm and the 13.2 MW Iława wind farm in Poland.
In an expansion of their cooperation, Axpo Polska will buy the full output generated by two new wind farms currently under construction - the 81.4 MW Banie III wind farm, and the Sepopol wind farm with an expected capacity of 44 MW. These Energix-owned projects will become operational in 2022 and have received subsidies in recent renewables auctions. The transaction reinforces Axpo’s role as one of the leading off-takers of energy from renewable sources in Poland, with a current portfolio comprising more than 1 GW of installed capacity.
For the Banie III and Sepopol wind farms, Axpo Polska offered a flexible PPA where Energix may actively decide whether the power generated by the wind farms will be settled on a spot basis or hedged using forward products. This structure is suitable for wind farms operating under the previous support scheme (green certificates) in Poland, and also for auction projects.
Axpo has been present in the Polish market for 20 years. Clients in Poland can benefit from tailor-made PPAs, as well as power and gas supply solutions based on structured long-term contracts. In the past six years, Axpo has also expanded its client portfolio to small and medium-sized businesses (SMEs) and now provides services for 15,000 of these companies in the country.
Long-term power purchase agreements are an important growth area in the energy sector. PPAs have become a megatrend throughout Europe due to cuts or elimination of government subsidies for renewable energies and the sharp drop in the cost price of new plants. The demand for PPAs and innovative energy services will continue to increase in the course of the rapid expansion of renewable energies. Axpo has in-depth expertise in the field of PPAs and supports numerous corporate customers in around 40 markets on their way to lower CO2 emissions.