25.02.2021 - Axpo is further consolidating its business activities in Central Eastern Europe: the company’s Warsaw-based subsidiary signed a long-term energy services agreement with Green Investment Group (GIG) and Danone companies in Poland (Danone) for a period of 10 years. Under the agreement, Axpo Polska will provide route to market and balancing services for a GIG-owned wind farm, with Axpo also acting as the power supplier of Danone. Thereby, Axpo Polska demonstrates its ability to play a key role in complex physical Corporate PPA structures in the Polish market.
Axpo has been working together with the UK-based Green Investment Group, one of the leading investors in renewable energies in Europe, for quite a long time. Both Axpo Polska and Axpo Nordic have signed agreements with GIG in Poland and in Scandinavia.
For this project, GIG have signed a 10 year physical baseload PPA with Danone, and Axpo is providing key services to see that the power produced by the 25.3 MW Jozwin wind farm is delivered physically to Danone’s metering points in Poland. Axpo will also buy all excess generation of the wind farm and provide own use supply and balancing services on the entire volume. In addition, acting as Danone’s licensed supplier, Axpo Polska will provide any electricity that the company uses on top of the volume sold by GIG.
Grzegorz Biliński, Managing Director Axpo Polska, comments: “We see an ever increasing demand of energy-intensive industrial companies in Poland to cover their electricity consumption from renewable energy sources. On the other side, project owners are looking for price stability when selling the electricity produced. While our country still heavily relies on coal, Axpo brings producers and consumers together and, thereby, acts as an enabler and accelerator for the transition towards more renewable energies.”
Poland is the largest electricity market in Central Eastern Europe, but has historically had one of the lowest shares of renewable energy in its electricity generation mix. Currently, demand is still predominantly met from coal-fired power plants. But the country has ambitious targets: By 2050, 52% of the Polish power generation is forecast to come from wind, solar and biomass.
Axpo has been present in the Polish market for 20 years, becoming one of the largest independent off-takers of renewable energy. Clients in Poland can benefit from tailor-made PPAs and power supply solutions based on structured long term contracts, power balancing and forecasting, as well as property rights and guarantees of origin trading, all provided by Axpo. Within the past 6 years, Axpo has also expanded its client portfolio to small and medium sized businesses (SME) and now provides services for 15.000 of these companies in the country.