German utility RWE Supply & Trading, asset manager Luxcara and automaker VW have signed what is claimed to be one of Germany’s largest renewable power purchase agreements.
As part of the 10-year PPA, RWE will source renewable energy generated from Luxcara’s solar energy farm set to be built in Tramm-Göthen and supply it to VW.
RWE will provide VW with up to 170GWh of renewable capacity per annum from the solar farm. The project is set to be completed in 2021.
The collaboration between RWE and VW also extends to further projects, which are currently in the planning stage at RWE.
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Ulf Kerstin, COO of commercial asset optimisation at RWE Supply & Trading, said: “By entering into this agreement we are backing VW’s ambitious climate protection programme. As globally active energy trader, we offer customised solutions for the procurement of green electricity, from both our own and third-party plants.”
VW has set a goal to become net-zero by 2050 as part of its “Way to Zero” slogan which includes increasing the company’s green energy portfolio and electrification of its fleets.
Anja Dotzenrath, CEO of RWE Renewables, adds: “eMobility and renewables are two sides of the same coin. Without green electricity, there can be no sustainable transformation of the transport sector. By working with VW in this way, we can turn more green electricity projects into reality, and do an even better job of achieving our ambitious growth targets for renewables.”
Long-term PPA´s are increasingly becoming an option for operators of existing as well as new renewable energy plants. This is where PPA models offer an advantage, since they require no participation in tenders for feed-in tariffs. The result is more flexibility in terms of location, and new projects can be implemented more quickly.