- Utility PPA was secured for 7 wind turbines
- First PPA executed in Germany via Renewable Exchange
- Renewable Exchange’s smart PPA management solution helped ABO Wind access a highly-competitive PPA price and maximise power export revenue for the site
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ABO Wind, a global project developer for renewable energies, which has turnkey developed over 800 wind, solar and battery assets, and Renewable Exchange, leading utility PPA trading platform, partnered on their first joint project in Germany to secure a PPA for 7 post-EEG wind turbines in Rhineland-Palatinate area (Rheinland-Pfalz).
The site for which a power purchase agreement (PPA) was sought consists of 7 wind turbines with a cumulative capacity of 4.2MW. The assets entered the post-subsidy phase after its Feed-in-Tariff (FiT) support expired; the FiT support lasted 20 years guaranteeing project revenue. A 2-year fixed-price PPA was deemed the most suitable option to ensure a stable revenue stream in the coming years. To secure the best PPA price, ABO Wind partnered with Renewable Exchange. The developer plans to repower the plants and is operating them in the meantime.
Taking into account the continued power price rises, ABO Wind held off executing the PPA to the last possible moment to optimise the best value from the assets. The result was an increase of 17 Euros per MWh in the final PPA value, compared to the first offers received in August. Similar to the UK market, there was a high number of ‘offtakers’ prepared to bid for the project and the spread between the top and bottom bids in the early stages exceeded 15 Euros per MWh.
Katharina Doyle, Project Manager Energy Sales & Markets, responsible for optimising the revenue and finance options for the site, comments on her work with Renewable Exchange: “We are happy to be the first project for Renewable Exchange in Germany and had a thoroughly positive experience. They expertly managed the process of sourcing a PPA. We are very pleased with the price and terms we secured, which enabled us to continue supporting the German energy transition with our projects. We look forward to further collaboration in the future.”
This was the first project for Renewable Exchange in Germany, as the company expands into Europe. “We are very pleased to have been able to help ABO Wind achieve these excellent results,” says Robert Ogden, Renewable Exchange’s CEO and Founder. “The post-EEG era in Germany will undoubtedly be a challenging time for many asset owners, especially on small-scale sites. Our mission is to ensure generators can achieve a fair price for their power and maximise the revenue on their assets, which is what we managed to do for ABO Wind.”
Over 51 GW of renewable generation capacity will come off the FiT scheme in Germany by 2030. As such, there’s a growing interest in PPAs as a new form of revenue stream for export power generation. PPAs are a familiar concept in Europe, yet with the lack of support and access to data, obtaining a fair value deal is often challenging for generators and asset owners. The Renewable Exchange’s online PPA platform will introduce transparency, facilitate access to data and simplify the process of obtaining utility PPA contracts for existing and new-built generation in Germany.
About ABO Wind: ABO Wind is a globally successful project developer for renewable energies with more than 900 employees. Since 1996, the company has developed and sold wind energy, solar and biogas projects with a capacity of more than 3,700 megawatts and has also built around half of them.