Axpo has facilitated a CPPA with Austrian energy company Verbund to supply an unnamed multinational automotive supplier to its production plants in Romania.
Under the agreement, the plants in Romania will be supplied with 70GWh a year from the 226MW Verbund wind farm in Casimcea, near the Romanian Black Sea coast.
Axpo said this is the first long-term CPPA for renewable energies with an industrial company in the country, the deal is backed by Guarantees of Origin (GoO) from the wind farm, which comprises 88 wind turbines.
The automotive supplier will switch to 100% renewable electricity for its automotive and component production plants in Romania.
The agreement also gives the company long-term price stability for the electricity needed by its facilities in Romania.
Axpo Energy Romania managing director Radu Rat commented: “This Corporate PPA is a major milestone in our partnership with VERBUND.
“Since our cooperation began in late 2016, we have supported the company in supplying numerous Romanian industrial customers with green energy.
“In this PPA, Axpo and Verbund once again underlined their role as forerunners in marketing renewable energies and signing complex PPAs for energy-intensive large corporates in Romania.
“It demonstrates that Romania not only has a lot of green energy potential but also that its energy transition is well underway.”
Verbund Wind Power Romania managing director Markus Kienler added: “This long-term Corporate PPA is a big milestone for Verbund and in line with our strategic vision of long-lasting partnerships.
“The PPA is key to hedging the revenues we generate from our operating wind farm in Casimcea.
“In doing so, it will make a substantial contribution to the financial stability of our renewable energy business in Romania.
“We look forward to continuing our cooperation with Axpo.”
Axpo has offered customers in Romania a wide range of expertise in power and gas full supply, energy trading, green certificates and EUA certificates, becoming one of the main players in the Romanian energy market.
Last year the team concluded a ground-breaking seven-year PPA for CEZ Romania’s 600MW Fântânele-Cogealac-Gradina wind farm, managed by a Macquarie Asset Management long-term infrastructure fund.