Courtesy of LM Wind Power
Deutsche Bahn gets subsidy-free wind power from Statkraft
Statkraft, Europe's largest producer of renewable energy, and Deutsche Bahn have signed a one-year power purchase agreement (PPA). Since 1 January, Statkraft has been supplying green power from German onshore wind farms, whose subsidies from the Renewable Energy Act (EEG) expired.
The green electricity comes from a portfolio of wind turbines with which Statkraft has concluded a power purchase agreement for the period after the expiry of EEG subsidies. The contract with Deutsche Bahn covers an expected generation of almost 40,000 MWh and ensures the economic continued operation of the plants.
On 31 December 2020, EEG subsidies expired for the first wind turbines in Germany after 20 years. The PPA between Statkraft and Deutsche Bahn not only ensures the continued economic operation of around 70 wind turbines without subsidies, but also supports Deutsche Bahn's sustainability ambitions using green electricity.
"We are very pleased that the agreement with Deutsche Bahn has come about at this particular time. It proves that renewable energy plants whose subsidies have expired have an important role to play in decarbonizing the industry. Unlike the follow-up support decided in the EEG 2021, PPAs enable both a long-term price guarantee and the marketing of green added value," says Patrick Koch, Statkraft's Head of Origination in Germany.
Statkraft meets the individual requirements of operators and industrial customers with tailor-made solutions. Their expectations often differ in terms of contract duration, remuneration models and other contract details. In this specific case, Statkraft supplies the green electricity to Deutsche Bahn for one year, while the operator simultaneously receives price security for several years.
Follow-up subsidies and PPAs
As part of the EEG reform at the end of 2020, the German government created a transitional solution until 2022 for wind turbines whose subsidies have expired.
PPAs, on the other hand, are a market-based alternative to the government's transitional solution. Operators of existing wind turbines are guaranteed long-term price security and the green electricity from these turbines can be used to supply industry and commerce for the first time.