Axpo Holding, Switzerland's largest producer of renewable energy, announced on Monday that it hasd signed a power purchase agreement (PPA) with Denmark's renewables investor Obton for an 11 MW solar plant in Germany.
The project, nameddubbed Klatzow, is now under construction in the German state of Mecklenburg-Vorpommern. According to the Swiss energy firm, the commissioning is expected towill take place in the spring of 2022.
The PPA will last ten years and will be the solar farm's primary source of revenue. The Klatzow solar park was awarded by Federal Network Agency, German regulatory office for electricity, in the innovation tender, the deal thus received a fixed market premium in addition to the spot revenues.
The deal marks Obton's first PPA transaction in Germany. The German financial services firm Deutsche Anlagen-Leasing provided financial aid and assisted the Danish developer in developing the PPA element of Klatzow's hybrid marketing solution.
“Thanks to the collaborative efforts of all partners involved, this PPA inked with Axpo can serve as a model for future initiatives of this nature,” said Nicky Larsen, Obton's director of business development. “The good cooperation of all stakeholders, as well as the unique financing structure, pave the way for PPA initiatives like this.”
Axpo has recently speeded up its transition to green energy, with a 22 MW Polish onshore wind PPA just being having been inked and a 300 MW solar PPA signed in January.