R.Power and Orange Polska have announced the conclusion of a long-term Power Purchase Agreement (PPA). As part of it, Orange Polska will purchase over 600 GWh of electricity produced by the R.Power Group’s photovoltaic farms between 2024 and 2034. The agreement is an important step towards increasing the availability of green energy on the Polish market and accelerating the energy transition in Poland.
With the agreement, the so-called additionality effect will be achieved, as it will make a significant contribution to the construction of farms that are a source of energy supply under the agreement. Once production begins, the Polish power industry will avoid more than 400,000 tonnes of CO2 emissions over the life of the agreement.
Corporate PPAs key priorities
“The agreement will allow us to accelerate the implementation of our strategy to build our own generation sources both in Poland and other European markets and increase the level of commercialisation of the projects in our portfolio. We currently have 1.5 GW of projects in both Poland and other European markets with secured access to the grid and more than 18 GW of capacity in earlier stages of project development. R.Power’s strength is its stable capital, i.e. the Group’s Three Seas Initiative Investment Fund. This allows us to carry out the largest investments in photovoltaic sources across Europe in a safe and predictable manner.” said Przemek Pięta, CEO of R.Power. He added that increasing energy sales under cPPAs, such as the one with Orange Polska, is currently one of R.Power’s key priorities.
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Corporate Power Purchase Agreements (cPPAs) are a solution that gives the consumer direct access to green energy and is part of the implementation of ESG measures. In turn, the generator, thanks to the cPPA, gains a guarantee of energy off-take at a certain price which, consequently, makes it easier for them to make an investment decision and obtain bank financing for the construction of the farms. From the consumer’s point of view, a long-term contract with a green energy producer provides effective protection against sudden price increases and fluctuations, allowing them to focus on running their business without having to constantly manage energy price changes.
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Renewables cover at least 70 % of the electricity consumption
“This is our next step towards zero-carbon and another PPA (Power Purchase Agreement), but the first for photovoltaics on such a significant scale. With the energy secured through this cooperation, renewables will also account for at least 70% of our electricity consumption in the coming years. This means that we are already meeting our strategic goal of meeting at least 65% of our energy needs from renewable sources by 2025, even taking into account the rapidly growing traffic on our grid” Liudmila Climoc, CEO of Orange Polska S.A., said. (hcn)
