Swedish energy company Vattenfall and the Power & Air Solutions subsidiary of German telecommunications company Deutsche Telekom, have signed a corporate 10-year solar power purchase agreement (PPA).
Under the contract, Vattenfall will provide Power & Air Solutions with electricity generated by a 60 MW solar power plant in Mecklenburg-Western Pomerania, in eastern Germany.
The solar park is under development and construction is planned for mid-2021. The purchase price for the solar power was not disclosed.
“We are very pleased that with this contract … we are continuing to advance the growing market for long-term electricity supply contracts for industrial customers in Germany,” said Christine Lauber, director for sales and origination Germany at Vattenfall.
Corporate PPAs are more common in other parts of Europe with Vattenfall claiming to be a leader in such deals in a buoyant northern European market. The Swedish power company, which began an action against the German government in October 2016 over the state’s decision to phase out nuclear power, signed a long-term electricity supply contract with a U.K. beverage manufacturer at the start of the month.
A recent report by Enervis Energy Advisors, released by German consultancy Enervis, stated the nation has a 1.05 GW pipeline of wind and solar projects for which bilateral PPAs have been secured.