Axpo, Switzerland's largest producer of renewable energy, has inked a Power Purchase Agreement (PPA) with Polish solar developer R.Power Group for the distribution of electricity produced by a 300 MWp array of solar power plants in Poland.
The power plant is currently under construction. It will be put into production gradually and is expected to reach full production by mid-2023, with capacity ranging from 0.3 MWp to 30 MWp. The plant’s asset productivity and maintenance will be taken care by Nomad Electric Service.
Under the deal, a special commercial structure was created to ensure the profitability of the project portfolio. Axpo Polska will purchase the entire production generated by the solar power plants between 2022 and 2026. It will also offer R.Power Group access to price hedging tools, ensuring the bankability of renewable energy projects.
Axpo Polska has been mainly active in wind energy sector so far, with an off-take portfolio consisting of approximately 1.5 GW of installed capacity. The deal will strengthen Axpo's role as one of the major off-takers of energy from Poland's renewable energy sources.
Axpo Polska's head origination and board member Paweł Wierzbicki said that the agreement between Axpo and R.Power is one of the largest solar PPAs ever signed in the Polish energy market and this demonstrates that Axpo is working to take a leading position in Polish solar sector. He added that Axpo will continue to work with R. Power Group on other solar projects to accelerate the Polish energy transition.
Tomasz Sęk, Director of R.Power, said, “We appreciate Axpo’s flexibility and proactive approach. To scale up R.Power Group activity and securing commercialization and bankability of our new PV projects both in Poland and abroad as our solar portfolio continues to expand in the European market, it is our priority to build a strong relationship with a trusted off-taker, which has international presence, like Axpo.”
Axpo has been in the Polish market for 20 years. Polish clients can benefit from bespoke PPA as well as structured long-term contract power and gas supply solutions. Over the last six years, Axpo has expanded its client portfolio to SMEs and currently serves 15,000 of these companies in the country.