Axpo has signed a long-term power purchase agreement (PPA) with Hamburg-based solar specialist ENERPARC AG as the company continues to expand its solar PPA business in Germany, it was announced today. Under the ten-year agreement, Axpo will buy and market power from a new solar park in Büttel, Schleswig-Holstein, from 2023. The solar park has an on-site battery and provides base load energy.
With approximately 119,000 modules, the solar park in Büttel has an installed capacity of around 39 MWp and will generate power for about 7,500 households. Under the PPA, Axpo will market production from the already completed PV plant together with the project developer ENERPARC and its trading subsidiary Sunnic Lighthouse GmbH for a period of ten years. Axpo will purchase approximately 35 GWh of solar power a year, of which 4 GWh will be marketed under the market premium model.
For the first time in Germany, the solar park will supply base load energy to the buyer. Sunnic Lighthouse GmbH will manage the volatile supply with the help of an 8 MWh battery which will be installed at the site. Financing for this innovative model took place through Deutsche Anlagen Leasing GmbH & Co. KG (DAL).
Welcoming the announcement, Thomas Kott, Head Portfolio Management at Axpo Deutschland, said: “With this PPA, we have once again expanded the solar portfolio that Axpo markets on behalf of its customers. Our objective is to support the expansion of renewable energies in general, and solar energy in particular, using our extensive know-how of PPAs to advance the energy transition in Germany. The innovation tender for projects with battery storage is an important part of this undertaking and will make it possible to implement more projects in future. We look forward to cooperating with our experienced and professional partner ENERPARC.”
Christoph Koeppen, CEO and Chairman of ENERPARC, added: “Times like these demonstrate how important it is to invest in the energy transition. Having Axpo on board for this project is an important step in the right direction and we look forward to the joint implementation of this PPA.”
Dr. Peer Günzel, Sales Manager Infrastructure & Utilities at DAL, commented: “We are pleased to have been able to support our client ENERPARC with this first base load PPA in Germany. In structuring and financing this project, 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 projects in the future.”
Axpo has been active in energy trading in Germany since 2003. Its German subsidiary based in Leipzig and Düsseldorf is among the leading marketers of wind and solar energy in the largest power market in Europe, and can rely on its long-standing experience with onshore as well as offshore wind farms. In addition to the PPA business, Axpo Deutschland’s core expertise includes services in power and natural gas procurement and structuring for industrial companies, power plant operators and distributors.
More information on Axpo's PPA business on our website.