Innovative models of power purchase agreements like multi-buyer PPAs are gaining popularity across Europe. A historic PPA has been signed by 25 companies for a new PV park in Denmark
A pioneering coalition of 25 Danish companies has signed a joint 5-year agreement to purchase electricity from a new solar park in Mesballe, Djursland, ensuring the park’s construction. The agreement marks a historic milestone in the way businesses access renewable energy and participate in the energy transition.
The new solar park is expected to be operational by the end of the year and will produce 14,000,000 kWh annually – equivalent to the electricity consumption of approximately 3,100 Danish households.
Unlike the traditional method of purchasing renewable energy, PPAs are the only electricity agreement that directly result in the development of new renewable energy projects, offering both environmental and economic benefits. They achieve this by providing renewable energy developers with the revenue security they need to finance new parks. In exchange, the companies that sign these agreements lock in low, fixed electricity costs and actively contribute to the energy transition.
The 25 companies in the new agreement with Reel include Danica Ejendomme, Kvadrat, JP/Politikens Hus, Aquaporin, the Danish Society of Engineers (IDA), Viggo, GPV Group, and several local companies.
>> More details about this PPA can be read here