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. 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 (Energiewende). "As EnBW's trading division, we connect developers and operators of renewable power plants with the market with tailor-made products and services. 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: "In the rapidly growing market for green electricity, power purchase agreements 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 AG.
The solar park project has been financed by Bayerische Landesbank. Swiss-based advisory firm Pexapark acted as BEE's PPA Advisor.