Centrica Energy Trading has entered into a 10-year solar PPA with Better Energy for a total of 112GWh per year.
Under the agreement Centrica will offtake power from two new solar parks and add new green energy to the European power grid.
The two new solar parks will be developed by Better Energy as part of the agreement.
Better Energy has developed several solar parks in Denmark without state subsidies, and the new agreement reaffirms that solar energy can compete with the cheapest energy sources in Northern Europe, according to the company.
The two new Better Energy solar parks are expected to produce 112 GWh per year (equivalent to the power consumption of 70,000 Danish households) and this output will be handled and traded by Centrica in the next decade.
Better Energy’s executive vice president for power solutions Peter Munck Søe-Jensen said: “The world will have a massive need for renewable energy in the near future.
“Therefore, it is critical that both corporations and energy commodity traders focus on additional energy today.
“By committing to buying power from solar parks under development, Centrica ensures that new green energy is added to the European power grid.
“To reach both short-term and long-term European climate goals, we need to expand solar power – quickly – and our deal with Centrica is an important step in the right direction.”
Centrica’s director of route-to-market & asset management Kristian Gjerløv-Juel said: “The renewable PPA deal between Centrica and Better Energy is a great example of renewables competing with conventional power production and delivering green energy to European consumers.
“Also, the agreement showcases that subsidy-free solar park development is possible.
“We still need more, but this is a great project.
“The agreement underlines our dedication to playing an active role in Europe’s green transition towards a CO2-neutral future.”