6 April 2021
Large Power Purchase Agreements show European industry wants renewables
Daimler and Statkraft have signed a renewable Purchase Power Agreement (PPA) to use wind and solar energy to power Mercedes factories, 24/7.
An increasing number of big industrial players are looking to decarbonise their operations through these agreements with renewables. Daimler have already signed PPAs with wind farms in Germany and Poland. But this new deal will give them 100% renewable energy 24/7 as it brings wind together with solar and with hydro capacity in Norway providing back-up.
The wind power will come from 200 wind turbines spread across 24 different wind farms in Germany. These are existing wind farms that are no longer getting public financial support. So, the deal keeps them operating and helps prevent any early and unnecessary decommissioning of the turbines.
And by combining wind, solar and hydro Daimler and Statkraft are showing that renewables can deliver stable and reliable power to industry, in this case to a core part of Europe’s manufacturing base.
The German Government and other Governments should keep supporting these kinds of PPA deals. They are a great way to support market-driven demand for renewable energy. But there are still barriers to PPAs in many countries. For example, energy-intensive industries in Germany are unnecessarily penalised today if they sign a corporate renewable PPA. And some Governments withhold the necessary guarantees of origin that underpin the PPAs by providing the traceability of renewable energy.
WindEurope CEO Giles Dickson said: “This is a fantastic deal. Daimler gets clean energy. Europe’s biggest industry take a big step forward in cutting its emissions. 24 wind farms get a new customer and can keep running free of public support. The wind is combined with solar and hydro to give 24/7 stable power. And Europe gets a perfect model for how cheap and reliable renewables can decarbonise the economy.”