Axpo boosts German subsidy-free scene with PPA debut

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
(Credit: Axpo)

Axpo has become the offtaker of one of Germany’s supposedly first zero-subsidy projects, with a new power purchase agreement (PPA) covering the plant’s first few years of life.

A German subsidiary of the energy trader will be buying power off a 1.5MW installation in Bavaria, the joint work of investor SEAC and developer and EPC specialist MaxSolar.

Built towards the south of the German state, the 1.57GWh-a-year plant will sell electricity to Axpo over the next five years, in return for an undisclosed fixed price.

Contacted by PV Tech today, Axpo did not comment on the PPA’s pricing arrangements but explained the 1.5MW plant was completed in early July, and connected since to the grid.

The installation’s promoters are billing it as one of the first subsidy-free projects in Germany, a country slower in its solar PPA uptake than Spain, Portugal and others in Europe.

Axpo's PPA foray – its first-ever in Germany – comes just two months after the energy trader snapped up France's Urbasolar, acquiring a 1.3GW-plus solar portfolio and pipeline in the process. 

Europe’s PV giant stays small to learn PPA ropes

In a statement, MaxSolar said the Bavarian project was kept “deliberately small” to better learn from the PPA experience.

“The concept of PPAs has been successfully used internationally for decades. In Germany, this topic has been a niche existence to date,” the firm added.

In Germany, the project is the latest to lay claim to the zero-subsidy frontrunner title. Other announcements so far this year include EnBW’s 175MW project and BayWa r.e.’s 8.8MW scheme.

The exploration of the PPA avenue comes as the solar industry braces for a potential cut-off of its key support driver to date, that of Germany’s renewable subsidies.

Having jumped from 10GW (2009) to nearly 46GW (2018) in a decade, Europe’s top PV market is legally required to halt subsidies when the 52GW capacity threshold is reached.

Consultants including Aurora Energy Research have urged the country to embrace PPAs more decisively in its post-subsidy era, unlocking a €2 billion (US$2.25 billion) market in the process.

Read Next

May 6, 2021
Norwegian energy company Equinor has secured a 1.6GW solar project pipeline in Poland by acquiring local renewables developer Wento.
May 5, 2021
Europe’s solar industry has lauded the inclusion of a commitment to "re-ignite" Europe's solar manufacturing sector within the European Commission’s refreshed industrial strategy.
PV Tech Premium
May 3, 2021
Companies are purchasing solar, wind, and other forms of renewable energy more than ever before. The power purchase agreement (PPA) market in Europe has grown to a cumulative capacity of over 12GW, with a record 4GW signed in 2020. Corporate climate commitments are opening doors for investment in renewable energy, and continued price declines are convincing companies to sign new contracts. Is the European market ready to fulfil its potential? By Dr. Mercè Labordena, senior policy advisor at SolarPower Europe, and Milena Koot, communications advisor at SolarPower Europe
April 28, 2021
Renewable energy group BayWa r.e. has opened what it claims is its largest PV warehouse in Europe yet in a bid to expand its distribution network in the continent.
April 26, 2021
Germany’s renewable energy sector has said new government plans to more than triple the PV capacity included in next year’s auctions do not go far enough in supporting long-term solar deployment.
April 21, 2021
Seraphim Solar has become the latest mainstream module manufacturer to take aim at the Central Europe solar market, signing distribution agreements with a distributor and installer in the region.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021