Axpo’s facilitated a pioneering corporate power purchase agreement (PPA) with VERBUND, Austria’s leading energy company, and a multinational automotive supplier operating in Romania. Under the agreement, the manufacturer’s production plants in Romania will be supplied with 100% green energy from the VERBUND wind farm in Casimcea, near the Romanian Black Sea coast.
Axpo has a long-term strategic partnership with VERBUND and enabled the agreement, which is unique both in the wider Central and South-Eastern European energy market and Romania itself. From 2021 until the end of 2026, the corporate PPA will see VERBUND Wind Power Romania SRL supply the automotive company with 100% green electricity amounting to 70 GWh a year. The first long-term Corporate PPA for renewable energies with an industrial company in the country, the deal is backed by Guarantees of Origin (GoO) from one of Europe’s largest onshore wind farms, which comprises 88 wind turbines with a total installed capacity of 226 MW.
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.
The deal was a joint project of VERBUND and Axpo: VERBUND has secured a buyer for the GoOs, which provides the company with long-term price security for the electricity generated in Casimcea. Axpo Energy Romania, in turn, was involved commercially in this landmark corporate PPA by bridging the gap between the counterparties. The Bucharest-based Axpo subsidiary also made a decisive contribution in supporting the commercial transaction’s execution and structuring related operations for all support functions such as portfolio management, back-office and operations.
“This Corporate PPA is a major milestone in our partnership with VERBUND”, commented Radu Raț, Managing Director Axpo Energy Romania. It demonstrates that Romania not only has a lot of green energy potential but also that its energy transition is well underway.”
Markus Kienler, Managing Director VERBUND Wind Power Romania SRL, considers that the PPA is key to hedging the revenues the company generates from its 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. Axpo also has a track record in supplying green energy from wind farms to the automotive sector in Romania: Three years ago, Axpo signed a PPA with VERBUND and Dacia to supply the Romanian car manufacturer with electricity and green certificates from Romanian wind power plants. Last year the team concluded a ground-breaking seven-year PPA for CEZ Romania’s 600 MW Fântânele-Cogealac-Gradina wind farm, managed by a Macquarie Asset Management long-term infrastructure fund. For this achievement, Axpo Romania was awarded the Energynomics Best Newcomer Award in 2021.