innogy Renewables Polska and Kompania Piwowarska signed a 10-year PPA for electricity from the Nowy Staw Wind Farm. The long-term PPA will enable extension of this wind farm by another 11 MW, to a total of 84 MW. Starting from 2021, this will enable all Kompania Piwowarska breweries, i.e. Tyskie Browary Książęce in Tychy, Browar Dojlidy in Białystok and Lech Browary Wielkopolskie in Poznań to be 100 percent wind-powered.
“This is a true breakthrough on the Polish renewables market. Corporate Power Purchase Agreement concluded between innogy Renewables Polska and Kompania Piwowarska, owned by Asahi Breweries Europe Group, is the first agreement of this kind in Poland, allowing for financing extension of an operating wind farm by several turbines without support. This is a step towards independence of wind energy from state subsidies,” observed Janusz Gajowiecki, President of the Polish Wind Energy Association (PWEA).
There are signals on the market that other entities are interested in this formula to secure the supply of electricity. These include Boryszew Group, Mercedes, Procter & Gamble or Carlsberg.
As explained by PWEA President, for industrial customers, in particular energy-intensive ones, long-term PPAs for the purchase of electricity directly from a renewable source may secure the supply of electricity at an advantageous price, making them independent from market volatility. This is particularly important in Poland, where wholesale electricity prices will continue to be pressed by the coal-dominated energy mix and increasing CO2 emission allowance prices.
Innogy Polska is advertising its PPA offer, emphasizing the guarantee of a stable price, secure operating costs and reduction in carbon footprint. This aspect is increasingly important for producers that declare sustainable conduct in their business.
By entering the PPA with innogy Renewables Polska, Kompania Piwowarska will reduce CO2 emissions by 66 percent compared to 2019, which corresponds to emissions avoided by 7.5 thousand hectares of forest. It is expected that innogy Renewables’ Nowy Staw Wind Farm will cover 100 percent of electricity demand of Kompania Piwowarska’s breweries in Poland, starting in 2021. This will be possible due to the extension of the existing wind farm by additional 11 MW. Upon completion, Nowy Staw Wind Farm will deliver up to 80 GWh per year to three Polish breweries.
Industry in Poland starts to seek to optimise electricity costs by purchasing it directly from producers. However, agreements concluded to date powered industrial plants with electricity produced in already operating wind farms.
Such PPAs were concluded by the VSB Group’s EWG Taczalin Wind Farm with Mercedes Benz Manufacturing Poland, PGE Obrót with PepsiCo, and manufacturer of energy-saving fluorescent tubes, Signify, with the Kisielice Wind Farm owned by Green Investment Group.
Corporate PPAs might substantially contribute to the development of new RES installations, including wind and PV. However, this would require elimination of legal barriers, including the minimum distance rule (so-called 10 h), and obtaining bank guarantees.
“The conclusion of corporate PPAs for RES electricity has been on the agenda of foreign markets for a long time. 7 GW of capacity has already been contracted throughout Europe. In the record-breaking 2018 this amounted to 2.5 GW of RES installations, of which 1.5 GW in wind farms,” Gajowiecki adds.