Mercedes’ parent company, Daimler, has signed a new power-purchase agreement (PPA) with Norwegian power company Statkraft and electric supplier Enovos. The new deal will cover all of Daimler’s electricity needs in its home country, Germany.
The deal will take effect in real-time and enable Daimler to be 100% renewable. Any drop in solar or wind power will be made up for with Statkraft’s hydropower capabilities.
GreenTechMedia reported Statkraft said, the deal is on an “industrial scale,” however, financial details or the total scale of the PPA have not yet been announced.
Statkraft CEO Christian Rynning-Tønnesen released a press statement:
To generate green electricity exactly when it is needed is a major challenge that can only be met with considerable flexibility in generation. Our flexible hydropower plants complement the fluctuating power generation from wind and solar so that a 100% renewable power supply is guaranteed at all times. We are proud to offer this innovative concept to an outstanding industrial company – a solution that will reduce CO2 emissions and enable Daimler to achieve its climate goals.
Daimler currently uses electric supplier Enovos, they will continue to provide services for managing, balancing, billing, grid usage, and consumption forecasts for the new agreement.
Anke Langer, Managing Director of Enovos Germany, left a comment about the continued partnership:
We at Enovos are very pleased that we are making a significant contribution to this supply with our expertise in the energy industry and our long-standing customer relationship. We are convinced that this will have a signal effect on the entire green power supply market.
The three companies have a previous 46-megawatt wind PPA, which includes power from Germany’s Renewable Energy Sources Act (EEG), which is set to expire at the end of 2020. Subsidy-free solar projects will also be used to supply power to Daimler.
Research Director for Europe at Wood Mackenzie Power & Renewables, Peter Osbaldstone, talks about the evolution of the German renewables sector:
These projects have been benefiting from fixed remuneration for the past 20 years, so for many, the wholesale market is going to look like a pretty scary place. PPAs such as this one provide another route for generators, providing a secure revenue stream to support continuing operations. The flexibility of Statkraft’s hydro generators adds a further facet to this deal — renewable power generated when the off-taker requires it — and represents a new option in the range of offerings available to industrial off-takers.
It’s reported by Aurora Research that an estimated €2 billion ($2.2 billion) worth of annual investment is still available. With the EEG expiring at the end of the year, look for more companies to follow Daimler’s lead and seek corporate PPAs for their renewable energy production.
