German energy company EnBW has signed a long-term power purchase agreement for an unsubsidised 85MW photovoltaic park near Rostock in Germany.
The transaction, between EnNW and Energiekontor, the developer, is the first of its kind in Germany as it enables Energiekontor to build and operate the PV facility without any form of government support.
EnBW will buy 100% of the electricity at a fixed price, over the agreed 15-year term.
The solar farm, being developed on 120 hectares of farmland in the city of Marlow and the community of Dettmannsdorf, will be commissioned at the end of 2020.
Company chief executive Peter Szabo said: “With the PPA signed, we now have a sound basis to press ahead with developing the project.”
EnBW head of trading Peter Heydecker said: “Part of our trading strategy consists of continually adding to our product range and extending the time horizon on transactions.
“This also includes entering into long-term power agreements in Germany and other European markets.”
According to Heydecker the market for PPAs has already seen strong growth internationally in recent years.
“Our collaboration with Energiekontor is a key step in the implementation of solar power projects without state subsidies, including in Germany,” he said.
Energiekontor has already built the first subsidy-free wind farm in the UK.