02.11.2021 - A new contract with a subsidiary of the state-owned passenger and freight transport operator SNCF Voyageurs has further expanded Axpo’s marketing of renewable energies in France. Axpo will be responsible for balancing a target of 60 MW until the end of 2023 on behalf of SNCF Energie, which had entered into a long-term power purchase agreement (PPA) with the owners of wind farms and solar plants in France. The contract is a major milestone for Axpo as it seeks to become a significant player in the French PPA market.
Axpo is growing at a rapid pace in France, with the marketing of renewable energies, including wind power and solar energy, at the heart of its business. In addition to origination, providing energy balancing services and long-term supply contracts to industrial companies, Axpo is increasing its focus on PPAs.
As in many other European countries where Axpo is active, green electricity investors and producers in the French energy market are increasingly looking for buyers to bring investment and price security to their projects. At the same time, a growing number of energy-intensive industrial companies are seeking electricity from renewable sources.
Joanna Juszczak, Managing Director of Axpo’s branch in France, commented: “Axpo has extensive expertise in PPAs in many markets. Now we want to increase this mediating role between producers and consumers in France. The contract with SNCF Energie allows us to strengthen our relationship with a major player in the French market by assisting them in the integration of renewable assets into their supply and putting our know-how of balancing and the abundance of our diversified portfolio at their disposal. The experience gained from this partnership will be invaluable in the French corporate PPA market, which is expected to grow massively.”
Richard Fécamp, CEO of SNCF Energie, said: “Our objective for 2025 is to develop PPAs covering up to twenty per cent of the electricity consumption for passenger-train traction. The agreement signed with Axpo accelerates the operational implementation of the program.”
Khadidja Haned, Head of Operations at SNCF Energie, added: “With the forecast services and balancing costs risk management of our PPA production, this agreement helps us to manage efficiently our short-term hedging strategies. As a partnership agreement, it is also the opportunity for our team to develop its activities in managing positions risks of SNCF Energie’s renewable energy portfolio.”
Axpo offers local, regional and national clients in France a range of services in PPAs, renewable energy, portfolio management, structured products, and emission certificates. The Lyon-based 16-member team also maintains partnerships with other energy traders, producers and resellers in the wholesale market. On top of that, Axpo is strongly positioned in the French energy market thanks to its subsidiaries Volkswind and Urbasolar, which have established themselves as project developers for wind farms and solar plants in the country.