21.02.2022 - Axpo has signed a Power Purchase Agreement (PPA) with the Danish company Obton A/S, a leading solar energy investor in Europe, for the Klatzow solar park currently under construction in Mecklenburg-Vorpommern. The ten-year contract demonstrates the important role of PPAs in the expansion of renewable energies in Germany.
Construction of the 11 MWp Klatzow solar park near Neubrandenburg is already underway, with commissioning planned for spring 2022. While Axpo has been active in the renewable energy PPA business throughout Europe for more than 15 years and has already concluded several similar contracts in Germany, the PPA signing marks the entry of project developer Obton A/S to the PPA business in Germany. Financing was provided by Deutsche Anlagen-Leasing GmbH & Co. KG (DAL).
The Klatzow solar park was awarded by Germany’s Federal Network Agency in the EEG (Renewable Energies Act) "innovation tender". These projects receive a fixed market premium in addition to their spot revenues. The latter can be fixated through a long-term PPA. The Klatzow solar park project revenues will come mainly from the PPA, which will run for ten years. The currently attractive price level for long-term PPAs ensures robust profitability. This innovative model is being financed by Deutsche Leasing Finance GmbH with the involvement of KfW funds.
Janosch Abegg, Senior Originator at Axpo Germany, commented: “We are delighted to have contributed to making this project a reality. Projects from the innovation tender are an important part of the expansion of renewable energies in Germany. As an experienced PPA partner, Axpo can make an important contribution here to bringing more solar power to the market.”
Nicky Larsen, Director of Business Development Obton A/S, said: “This PPA signed with Axpo can serve as a template for further projects of this kind, thanks to the constructive work of all partners involved. The excellent cooperation of all parties and the innovative financing structure open the door to a real scaling of joint EEG and PPA projects such as this.”
Dr. Peer Günzel, Sales Manager Infrastructure & Utilities, DAL, added: “We are pleased to have been able to support our client Obton A/S in its first PPA transaction in Germany. In structuring the financing, DAL was able to draw on its concrete project experience with PPAs. We want to further expand our market-leading position in this sector and look forward to more exciting future projects.”
Axpo has been trading energy in Germany, Europe’s largest power market, since 2003. Its German subsidiary, based in Leipzig and Düsseldorf, is among the leading marketers of wind and solar energy in the country, drawing on its long-standing experience in onshore and offshore wind farms. In addition to its PPA business, Axpo Germany's core expertise includes power and natural gas procurement and structuring for industrial companies, power plant operators and distributors.
More information about Axpo’s PPA business can be found on our website.