17.03.23 - Axpo has concluded the first 10-year power purchase agreement (PPA) in Croatia, reinforcing the company’s leading position in the long-term energy services market in central and south-east Europe.
The landmark deal signed with Kunovac d.o.o. – a joint investment between the Finnish renewable energy fund manager Taaleri Energia and local developer ENCRO – covers almost 1.8 TWh of green electricity produced at Croatia’s newest onshore windfarm in the Zadar region. Jointly financed by the European Bank for Reconstruction and Development (EBRD), Zagrebacka Banka d.d. (UniCredit Bank) and the Croatian Bank for Reconstruction and Development (HBOR), the windfarm will produce enough green power for 85,000 households, helping to avoid more than 78,000 tonnes of CO2 emissions annually.
The wind farm has a total grid connected capacity of 111 MW, with Axpo providing the virtual PPA.
Axpo’s Head of Origination Western & Eastern Europe, Domenico Franceschino, said: “This landmark agreement reinforces Axpo’s ability to offer tailor-made and innovative energy products and services. The PPA capitalises on Axpo’s broader experience across Europe, bringing – together with Taaleri Energia – best practice from the Nordics to the central and south-east Europe region. In enabling energy price stability and predictability – which remain key in the current economic environment – we are also supporting the growth of renewables and the transition to a sustainable future.”
Head of Regional Origination, Calin Ratis, added: “What makes this deal ground-breaking is that Axpo worked closely with the project sponsors to enable innovative new offtake structures to the regional market. We were able to facilitate this deal thanks to our long-standing PPA experience across several energy markets, in-depth understanding of customer needs and, last but not least, local presence. Both the demand and potential for similar deals in central and south-east Europe are immense and we look forward to supporting other organisations in similar deals.”
Axpo has a strong presence throughout central and south-east Europe. Offices in several countries, including Poland, Romania, Hungary, Austria, Bulgaria, Croatia, Serbia and Greece, offer customers a wide range of services in power and gas full supply, energy trading and green certificates. The office in Budapest, Hungary, is the latest addition to Axpo’s regional network.
More information about Axpo’s PPA business can be found on our website.