The Hamburg-based operator of solar and wind power plants Blue Elephant Energy AG (BEE) and EnBW Energie Baden-Württemberg AG (EnBW) entered into long-term power purchase agreements (PPAs) for a 150-megawatt solar park project in the Spanish region of Andalusia.
Both parties have agreed not to disclose any details about the economic terms of the electricity price, which has been fixed for 10 years. The BEE project which consists of three solar parks, each with an installed capacity of 50 megawatt, and a substation, is already under construction. Grid connection of the solar power plants is scheduled for the second quarter of 2022.
Three solar parks will generate 315 GWh yearly
The solar power plants are expected to generate around 315 gigawatt hours of eco-friendly electricity every year. That is enough solar energy to meet the annual electricity needs of around 95,000 households and reduce annual carbon emissions by about 96,000 metric tons.
PPAs make it possible to build and operate unsubsidized renewable power plants and are therefore a key tool of the energy transition. “As EnBW’s trading division, we connect developers and operators of renewable power plants with the market with tailor-made products and services.
Long-standing expertise on the generating and trading side
We are pleased that we are now also able to contribute our expertise to the Spanish market,” explains Peter Heydecker, who is responsible for the trading division at EnBW. EnBW acts as an intermediary between producer and consumer of electricity and adapts the renewable energies, which can only be planned to a limited extent, to the needs of the electricity consumer, because market integration of renewable energies is fundamental to the success of the energy transition (Energiewende).
“With our long-standing experience on both the generating and trading side, we see good marketing opportunities in the Spanish wholesale market as well as for customer-specific solutions," says Heydecker. BEE also appreciates the advantages of having a broadly based partner in the energy industry:
PPAs secure unsubsidized solar projects
“In the rapidly growing market for green electricity, PPAs secure predictable revenues and enable us to realize projects that are not government-funded. That is why we are pleased to realize our first unsubsidized solar power project in Spain together with EnBW while contributing to a sustainable and clean energy supply on the Iberian Peninsula,” says Tim Kallas, Chief Investment Officer of Blue Elephant Energy.
Another solar PPA in Spain was signed by RWE Renewables and global healthcare company Grifols. Through the 10-year PPA Grifols will buy enough clean electricity to meet 28% of its total yearly electricity needs in Spain. Under the agreement, Grifols will purchase the entire output of a 21-hectare solar farm that RWE is developing in the southwest of Spain in Las Vaguadas, Badajoz.
Another solar PPA by RWE Renewables and Grifols
The solar farm will generate as much as 25 gigawatt hours yearly (capacity of 10 MWac), or sufficient green electricity to supply a town of about 21,000 people annually. More than 7,600 tons of CO2 will be saved each year. The solar farm is expected to be operational in the first half of 2022.
Until then, Grifols is meeting its green-electricity target through the purchase of Renewable Energy Certificates from RWE. “The PPA with RWE is an important step in Grifols’ efforts to reduce our environmental footprint as part of our commitment to grow sustainably and contribute to a healthier planet,” said Daniel Fleta, Grifols Chief Industrial Officer. (hcn)
