Centrica Energy Trading and Enovos Germany have signed a Power Purchase Agreement (PPA) that enables a German photovoltaic (PV) installation to operate without subsidy. Centrica and Enovos have agreed a 10-year contract where Centrica will supply the electricity generated from the 4MW installation to Enovos who will sell the renewable electricity to their industrial customers. The installation located in the North Western part of Germany started commercial operation in May 2019.
“This project is a first step in the direction of building a portfolio of unsubsidised projects. We are now fast reaching a tipping point of being able to support the roll out of subsidy-free renewable power in significant quantities and we are excited to play a key role in enabling that to happen. Accessing subsidy-free renewable power in a liberalised market makes PPAs attractive for corporations, industrials and utilities with ambitious climate goals. For both the developers and for us as a trading company this clearly is the future of renewables in Europe," explains Jens Tang, Head of Route-to-Market and Origination in Centrica Energy Trading.
Dr. Tobias Schuh, Head of Product and Service Development at Enovos Germany, added: “The interest from our German customers in the supply of renewable electricity is growing and a project like this meets high supply standards in electricity market and meets our customers’ demands for additionality and zero carbon emission policies. PV becomes an interesting energy source in terms of both cost price and climate impact. Yet, the challenge for utilities will be to integrate volatile production into common full supply concepts.”
Centrica Energy Trading will manage all balancing, forecasting and dispatching of the electricity generated by the solar installation. Enovos will integrate the production to supply their customers in different fields of industry, multi-site companies and municipal utilities.