German energy company Innogy and French trader BCM Energy have signed a power purchase agreement (PPA) bundling power exchange and renewables credentials together for the first time.
From the start of 2019 Innogy will provide electricity produced by its French hydro power plant in Courlon to BCM Energy with a guarantee the source is 100% renewable.
The agreement term is for two years with the an option to extend it, as well as add more of Innogy’s renewable assets.
Through its Planete OUI brand, BCM Energy will sell the traceable and guaranteed 100% renewable electricity to customers.
Innogy’s chief operating officer Hans Bunting said combining both power exchange and green credentials in one single PPA benefits customers.
“The entire value chain from the production of renewable electricity through to the end-use supply is in the hands of only two parties.
“We are very happy to team up with a partner that has an innovative perspective on the French retail energy market,” he said.
BCM Energy’s chief executive Albert Codinach said: “The expansion of renewables and rising demand for green electricity require new ways of managing the supply to end-consumers.
“We need more flexibility, we need to manage production and consumption directly and in real-time.”
He added: “We will increase the number of such contracts in order to directly and sustainably deliver 100% green supply in real time.”
Innogy has also taken the final investment decision (FID) on Spanish solar project.
Construction of the subsidy-free 50MW Alarcos facility in Castilla-La Mancha and its commissioning will happen this year.
Bunting said: “We are relying on long-term power purchase agreement contracts for this project.
“This is not only possible in sunny Spain, but also in many other markets solar energy is competitive. Decreasing prices for the equipment will continue to spur on this development.”
The planned investment volume, including the acquisition of project rights, amounts to about €40 million.
Spanish company Synergia Energy Solutions developed Alarcos in 2018 and sold all shares to Innogy in summer of last year.