17.06.2021 - Axpo is further strengthening its position in the UK energy market: Its subsidiary Axpo UK Ltd and French solar developer Voltalia have signed a new ten-year, fixed price power purchase agreement (PPA), it was announced today. Thereby, Axpo UK will purchase 100% of the electricity, Renewables Obligation Certificates (ROCs) and Renewable Energy Guarantees of Origin (REGOs) from Voltalia’s 7.2 MW Tonge solar park near Sittingbourne, in Kent, England.
The deal covers the period out to 2031, providing Voltalia with the certainty of fixed-price revenue streams for its energy and related commodities over the long-term. Axpo will receive carbon-free solar power and renewable certificates which will further augment its position as a leading trader and supplier of renewable electricity in the UK market.
Ross McHardy, Senior Originator at Axpo UK, said: “Axpo is an established provider of innovative risk management solutions within the energy value chain including the provision of long-term pricing and trading of certificates. We are pleased to close this new PPA with Voltalia; building on the two companies’ wholesale energy trading relationship across Europe. This PPA expands the existing Axpo portfolio, enabling further marketing of long-term, fixed price, green energy to our customers”.
Axpo has been present in the United Kingdom since 2008. Axpo UK, the Group’s subsidiary for Great Britain and Ireland, provides risk management, market access, and supply solutions across the energy supply chain. Its clients include gas and electricity producers, large industrial and commercial (I&C) consumers, and energy suppliers. Growth in the UK is part of Axpo’s strategy of constantly expanding its international presence.
Long-term power purchase agreements are an important growth area in the energy sector. PPAs have become a major trend throughout Europe due to reductions in or the elimination of government subsidies for renewable energies and the sharp drop in the cost price of new plants. The demand for PPAs and innovative energy services will continue to increase in the course of the rapid expansion of renewable energies. Axpo has in-depth expertise in the field of PPAs and supports numerous corporate customers in around 40 markets in lowering their CO2 emissions.