In a PPA, the two parties contractually agree on the amount of electricity to be supplied at a fixed price, usually for a period of five to 20 years. The number of companies looking to source as much renewable power as possible through green PPAs is growing steadily. According to the PPA platform RE-Source, renewable PPAs with a total capacity of 11.5 gigawatts (GW) were signed in Europe in 2024, an increase of six percent over the previous year. With six gigawatts, solar energy accounted for the lion’s share of new PPAs.

Benefits of PPAs

Long-term green power supply contracts allow companies to protect themselves from sudden price spikes, so they no longer need to rely on volatile energy markets. At the same time, PPAs can help them meet their decarbonisation requirements: As part of the EU Taxonomy Regulation, a growing number of companies are required to file reports and submit proof that their economic activities are sustainable, for example, by using green power.

Download our investors guide for free to get to know more about PPAs

By establishing a direct relationship between the producer and the buyer, PPAs ensure that power generation and consumption are optimally matched. This helps align the expansion of electricity generation capacity with demand. PPAs also promote the local use of electricity so that it is used as close to the production site as possible, thereby reducing the burden on the grid.

The PPA market in Europe

The largest European markets for green PPAs are Spain, Germany, the UK and France. In Spain, the largest PPA market by far, solar energy makes up the vast majority of the contracted generation volume. In Germany, the market is more diverse, with wind energy accounting for a similar share of PPAs as solar (next to a small share of other renewable sources of energy).

ees Europe: Strong focus on hydrogen

According to a study by management consultancy Enervis, the future PPA market will mainly be driven by two economic sectors: the tech industry / data center operators and green hydrogen production.

In 2024, data center operators ranked highest among PPA buyers in Europe with 3.5 GW, followed by the heavy industry with 2.8 GW. Annie Scanlan from RE-Source says it is pleasing to see that the metal industry has signed PPAs with a total capacity of 1.1 GW in 2024, demonstrating that even heavy industry can be decarbonised through renewables.

First renewable hydrogen auction on the Iberian market started

RE-Source also sees a trend towards hybridisation in the European PPA market: In 2024, companies signed twice as many PPAs for a combined wind and solar power supply to cover as much of their demand as possible with intermittent energy sources. (hcn)

This article was first published by The smarter E Europe, for which pv Europe is media partner.





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In a PPA, the two parties contractually agree on the amount of electricity to be supplied at a fixed price, usually for a period of five to 20 years. The number of companies looking to source as much renewable power as possible through green PPAs is growing steadily. According to the PPA platform RE-Source, renewable PPAs with a total capacity of 11.5 gigawatts (GW) were signed in Europe in 2024, an increase of six percent over the previous year. With six gigawatts, solar energy accounted for the lion’s share of new PPAs.

Benefits of PPAs

Long-term green power supply contracts allow companies to protect themselves from sudden price spikes, so they no longer need to rely on volatile energy markets. At the same time, PPAs can help them meet their decarbonization requirements: As part of the EU Taxonomy Regulation, a growing number of companies are required to file reports and submit proof that their economic activities are sustainable, for example, by using green power.

Download our investors guide for free to get to know more about PPAs

By establishing a direct relationship between the producer and the buyer, PPAs ensure that power generation and consumption are optimally matched. This helps align the expansion of electricity generation capacity with demand. PPAs also promote the local use of electricity so that it is used as close to the production site as possible, thereby reducing the burden on the grid.

The PPA market in Europe

The largest European markets for green PPAs are Spain, Germany, the UK and France. In Spain, the largest PPA market by far, solar energy makes up the vast majority of the contracted generation volume. In Germany, the market is more diverse, with wind energy accounting for a similar share of PPAs as solar (next to a small share of other renewable sources of energy).

ees Europe: Strong focus on hydrogen

According to a study by management consultancy Enervis, the future PPA market will mainly be driven by two economic sectors: the tech industry / data center operators and green hydrogen production.

In 2024, data center operators ranked highest among PPA buyers in Europe with 3.5 GW, followed by the heavy industry with 2.8 GW. Annie Scanlan from RE-Source says it is pleasing to see that the metal industry has signed PPAs with a total capacity of 1.1 GW in 2024, demonstrating that even heavy industry can be decarbonized through renewables.

First renewable hydrogen auction on the Iberian market started

RE-Source also sees a trend towards hybridization in the European PPA market: In 2024, companies signed twice as many PPAs for a combined wind and solar power supply to cover as much of their demand as possible with intermittent energy sources. (hcn)

This article was first published by The smarter E Europe, pv Europe is media partner.





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EDP’s diverse customer portfolio is consolidating its position in the awarding of PPAs. Customers worldwide are now supplied with more than 41 terawatt hours of electricity from renewable sources. Around 15 gigawatts from renewable energies are now contractually secured through PPAs (Power Purchase Agreements).

The top five sectors include utilities, data centres, wholesale and retail trade, and industry. More than 20 per cent of long-term contracts were signed to supply data centres in order to meet the increasing demand for electricity.

Wind, solar and batteries

In 2024 alone, EDP signed PPAs with 15 customers, representing a 15 per cent increase in total capacity from 2023. EDP continues to have a diversified mix of technologies, with solar and wind power making the largest contribution. Battery energy storage system (BESS) agreements also played an important role in the PPAs signed by EDP in 2024.

“Investment plan of 17 billion € in the energy transition by 2026”

Among the most important contracts signed by EDP last year are the PPA for up to 200 megawatts with Microsoft in Singapore as part of the country’s Solar Nova initiative and the 44-megawatt PPA with Amazon for a large solar project in Japan in Fukushima Prefecture. Other important milestones include the 184-megawatt PPA in Europe with a large technology company and the 200-megawatt tolling contract in Arizona with the Salt River Project.

Strong business in Europe

The increasing electricity demand of data centres accounted for 45 per cent of the contracts signed by the EDP Group in 2024. Overall, EDP has a cumulative capacity of 3.2 gigawatts for data centres worldwide.

Solar Investors Guide: ELTIF 2.0 and PPAs open new doors for solar investment

In Europe, EDP has for the first time signed PPAs for 176 megawatts from photovoltaics and wind power with a large technology company. The contracts include projects in Italy, Germany and France. In addition, EDP supplies solar power from the Netherlands and Spain to Google, for example, and solar power from Spain to Bloomberg.

For investors: all the news at a glance! Sign up now for the monthly investor newsletter

EDP is a major energy provider with offices in Europe, North America, South America and the Asia-Pacific region. The company specialises in four business areas: renewable energies, grids, customer solutions and global energy management. It employs 13,000 people worldwide. Around 97 per cent of the energy supplied already comes from renewable sources. (HS/hcn)





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Different alternatives exist to decarbonise industry such as biomethane, hydrogen, carbon capture, use, and storage (CCUS). While all solutions will be needed, direct electrification remains the most energy efficient and cheapest options for industrial processes below 500 °C. Yet, the electrification rate remains stuck at 33% when studies currently suggest that it could reach 90% by 2035 with available technologies. It’s time to find new incentives to boost industrial electrification.

Also see: Europe’s industry requires greater electrification

Eurelectric calls on the European Commission to establish an Electrification Bank within the upcoming Electrification Action Plan and coordinated with the Clean Industrial Deal. The Bank should centralise expertise, funding options and de-risking instruments under one stop-shop managed by the Commission and supported by the European Investment Bank as well as Member States. This instrument should provide compensation for critical capital expenditure (Capex), as well as conditional support for operational expenditures (Opex) during industries’ transition period.

The new position paper of Eurelectric (Union of the Electricity Industry) details how this bank would work.

Expertise

The Bank does not entail the creation of a new investment firm, but rather a comprehensive financing instrument to bring new EU and MS’s funding opportunities under one simplified point of access.

An Electrification Forum of relevant experts would inform the bank’s work by analysing industries in need of support and identifying existing market barriers.

Eligibility

The allocation of funds should differentiate between industrial consumers based on their heat processes to ensure a fair competition among bidding projects. Therefore, there should an auction call for those industries with low-to-medium-heat processes (below 500 degrees Celsius) – such as chemicals, transport, food and beverage that already have access to commercially mature large-scale heat pumps or electric boilers – and a separate auction call for  industries with higher temperature heat processes – such as cement, steel, glass, iron that may need more innovative electrified solutions.

Project applications should contain a credible electrification strategy backed by a quantitative business case and impact assessment.

Funding

Funding should be allocated based on auctions at EU level and auction-as-service where MS can allocate national resources to projects on the basis of auctions organised at EU level. The Commission should decide on the exact source of funding.

Beyond the upcoming Competitiveness fund, there are at least five EU funding mechanisms in place that should be considered for investments into industrial electrification: The Innovation Fund, Horizon Europe, Recovery and Resilience, Just Transition Fund, and the Modernisation Fund.

Unspent funds by Member States under the Multiannual Financial Framework (MFF) and Recovery and Resilience Facility (RRF) could also be channelled to electrification projects in those MSs.  

At the Member-State level, a significant portion of ETS revenues should also be re-directed towards industrial decarbonisation within that MS.

De-risking

The EIB should be closely involved in the vetting and implementation of projects under the Electrification Bank, as it can improve electrification projects’ risk profile through budget guarantees, equity investments or loans.

In particular, the EIB should allocate budget guarantees to derisk long-term PPAs. By securing the industrial buyer’s creditworthiness, guarantee schemes can reduce the market barriers which prevent industrial consumers from signing PPAs, while ensuring effective price signals remain on the electricity market.

Also see: New report shows ways to facilitate renewable integration into grids

„Direct electrification can improve industries’ energy efficiency, reduce operational costs over time, and enhance energy security by lowering dependence on imported fossil fuels. The Electrification Bank is the way to add a demand pull to the supply push“, Kristian Ruby, Secretary General of Eurelectric said. (hcn)





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NextPower UK ESG (NPUK) is a vital cog in the UK’s Clean Power 2030 ambitions of delivering energy security and decreasing the country’s carbon output through increasing the amount of domestic green power production.  The Fund provides investors attractive returns through stable cash flows from a carefully selected portfolio of new-build utility-scale solar PV assets in the UK with long-term contracted revenue streams. The fund made its first distribution to investors in September 2023 just 13 months after its launch.

NextPower UK ESG achieves another fundraising close exceeding target by 30%

The cornerstone investor into NPUK was the National Wealth Fund, contributing £250 million on a match-funding basis to drive private capital into new build renewables in the UK.  NEC welcomed several new investors into NPUK over the fundraising period, including several local government pension pools, alongside international investors looking to access and capture the attractive growth landscape for new build solar PV in the UK through a specialist investment manager. 

400 MW operating solar capacity in 2025

To date, NPUK has already deployed over 70% of its committed capital from investors and has recently acquired its fifteenth asset, raising NPUK’s portfolio capacity to 731MW.  NPUK currently has 249MW of operating solar assets in the UK, including Llanwern solar farm, the UK’s largest operating solar asset.

UK: Europe‘s largest battery facility goes into operation

NPUK has a further 482MW of solar and energy storage projects in construction or ready-to-build, alongside further near-term acquisitions in its pipeline.  The fund continues to make rapid progress in bringing online additional new-build solar and is on track to achieve over 400 MW of operating capacity this year.  NPUK is expected to exceed 1GW of capacity when fully deployed, contributing significant progress towards Clean Power 2030 ambitions of trebling UK solar capacity in the coming five years.

UK attractive market for utility-scale solar

Michael Bonte-Friedheim, Group CEO and Founding Partner of NextEnergy Group , commented: “NextPower UK has been another success story for NextEnergy Capital and the wider NextEnergy Group in the backdrop of a difficult global fundraising environment.  We raised £733 million and reached a final close nearly 50% higher than the fund’s initial target of £500 million. 

NextPower UK clearly demonstrates the demand from investors for this type of strategy, run by a specialist investment manager with a significant track record of capital deployment into high-quality assets.  I would like to thank both our existing and new investors across NextEnergy for their continued support and loyalty and in particular, thank our institutional and pension fund investors who committed to NextPower UK. 

UK: Large solar PV and storage co-location site in Birmingham operational

The UK remains an attractive and deep market to deploy utility-scale solar and there is a significant opportunity through the UK’s clean energy ambitions for investors to capture this growth with the right execution partners. In anticipation of this, NextEnergy Capital (NEC) will be launching a new follow-on strategy, NextEnergy UK II, early this summer.”

UK Infrastructure Bank helps catalyse NextEnergy Capital’s solar fund

Stuart Nivison, Head of Portfolio Management at the National Wealth Fund, said:  “Our cornerstone investment in NextPower UK was our first deal to leverage this scale of additional independent investment, and it is exciting to see their success story play out through this milestone fundraise. Today’s announcement perfectly demonstrates the impact our investments can have. Catalytic capital deployed by the National Wealth Fund going forward can help mobilise institutional investment into clean energy projects across the UK, driving growth and providing greater capacity to power homes and businesses.”  (hcn)





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NPUK is a vital cog in the UK’s Clean Power 2030 ambitions of delivering energy security and decreasing the country’s carbon output through increasing the amount of domestic green power production.  The Fund provides investors attractive returns through generating stable cash flows from a carefully selected portfolio of new-build utility-scale solar PV assets in the UK with long-term contracted revenue streams.   The Fund made its first distribution to investors in September 2023, just 13 months after the Fund’s launch.

NextPower UK ESG achieves another fundraising close exceeding target by 30%

The National Wealth Fund was the cornerstone investor into NPUK, investing £250 million on a match-funding basis to drive private capital into new build renewables in the UK.  NEC welcomed several new investors into NPUK over the fundraising period, including several local government pension pools, alongside international investors looking to access and capture the attractive growth landscape for new build solar PV in the UK through a specialist investment manager. 

400 MW operating solar capacity in 2025

To date, NPUK has already deployed over 70% of its committed capital from investors and has recently acquired its fifteenth asset, raising NPUK’s portfolio capacity to 731MW.  NPUK now has 249MW of operating solar assets in the UK, including Llanwern solar farm, the UK’s largest operating solar asset.

UK: Europe‘s largest battery facility goes into operation

NPUK has a further 482MW of solar and energy storage projects in construction or ready-to-build, alongside further near-term acquisitions in its pipeline.  The Fund continues to make rapid progress in bringing online additional new-build solar and is on track to achieve over 400 MW of operating capacity this year.  NPUK is expected to exceed 1GW of capacity when fully deployed, contributing significant progress towards Clean Power 2030 ambitions of trebling UK solar capacity in the coming five years.

UK attractive market for utility-scale solar

Michael Bonte-Friedheim, Group CEO and Founding Partner of NextEnergy Group, commented: “NextPower UK has been another success story for NextEnergy Capital and the wider NextEnergy Group in the backdrop of a difficult global fundraising environment.  We raised £733 million and reached a final close nearly 50% higher than the Fund’s initial target of £500 million. 

NextPower UK clearly demonstrates the demand from investors for this type of strategy, run by a specialist investment manager with a significant track record of capital deployment into high-quality assets.  I would like to thank both our existing and new investors across NextEnergy for their continued support and loyalty and in particular, thank our institutional and pension fund investors who committed to NextPower UK. 

UK: Large solar PV and storage co-location site in Birmingham operational

The UK remains an attractive and deep market to deploy utility-scale solar and there is a significant opportunity through the UK’s clean energy ambitions for investors to capture this growth with the right execution partners. In anticipation of this, NextEnergy Capital will be launching a new follow-on strategy, NextEnergy UK II, early this summer.”

UK Infrastructure Bank helps catalyse NextEnergy Capital’s solar fund

Stuart Nivison, Head of Portfolio Management at the National Wealth Fund, said:  “Our cornerstone investment in NextPower UK was our first deal to leverage this scale of additional independent investment, and it is exciting to see their success story play out through this milestone fundraise. Today’s announcement perfectly demonstrates the impact our investments can have. Catalytic capital deployed by the National Wealth Fund going forward can help mobilise institutional investment into clean energy projects across the UK, driving growth and providing greater capacity to power homes and businesses.”  (hcn)





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The new joint venture plans to implement solar projects with a total capacity of up to 500 MWp in Ukraine within the next three to five years. The collaboration with the European Bank for Reconstruction and Development marks the bank’s first equity investment in the Ukrainian energy sector since the beginning of the Ukraine conflict. This partnership not only strengthens the economic foundation of the projects but also reinforces the long-standing cooperation between the bank and company which have previously carried out joint projects in Poland and Kazakhstan.

Success through teamwork

“We are very proud to support Ukraine in expanding renewable energy. We are aware of the risks due to the current political situation, but it is all the more important to take a stand today and invest in Ukraine’s future. We are pleased to have the EBRD as an experienced partner by our side, with whom we have already successfully collaborated on multiple projects,” explains Joachim Goldbeck, CEO of Goldbeck Solar Group.

Holistic Approach

Grzegorz Zielinski, Director for Energy Europe at the EBRD, adds: “We are very pleased with our partnership with the Goldbeck Solar Group, an experienced global developer of renewable energy that is supporting Ukraine’s green energy future in these challenging times. We are confident that the EBRD’s holistic approach to the Ukrainian energy sector, both on the public and private level, will encourage further investment in the sector.”

DEG Loan to Promote Renewable Energy Projects in Ukraine

To finance solar projects, Goldbeck Solar Investment has received a loan of five-million euro from the German Investment and Development Company, DEG. The funds come from the ImpactConnect program, initiated by the German Federal Ministry for Economic Cooperation and Development, BMZ. The goal is to support projects that have a positive social impact and contribute to sustainable energy supply.

Cooperation with the Ukrainian government

During the Ukraine Recovery Conference in Berlin, Joachim Goldbeck and Svitlana Grynchuk, Deputy Energy Minister of Ukraine, signed a Memorandum of Understanding that lays the foundations for stronger cooperation between Goldbeck SolarInvestment and the Ukrainian Energy Ministry in the expansion of renewable energies in the country. The signing was attended by Energy Minister German Galushchenko and the Parliamentary State Secretary of the Federal Ministry for Economic Affairs and Climate Protection.





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Different alternatives exist to decarbonise industry such as biomethane, hydrogen, carbon capture, use, and storage (CCUS). While all solutions will be needed, direct electrification remains the most energy efficient and cheapest options for industrial processes below 500 °C. Yet, the electrification rate remains stuck at 33% when studies currently suggest that it could reach 90% by 2035 with available technologies. It’s time to find new incentives to boost industrial electrification.

Also see: Europe’s industry requires greater electrification

Eurelectric calls on the European Commission to establish an Electrification Bank within the upcoming Electrification Action Plan and coordinated with the Clean Industrial Deal. The Bank should centralise expertise, funding options and de-risking instruments under one stop-shop managed by the Commission and supported by the European Investment Bank as well as Member States. This instrument should provide compensation for critical capital expenditure (Capex), as well as conditional support for operational expenditures (Opex) during industries’ transition period.

The new position paper of Eurelectric (Union of the Electricity Industry) details how this bank would work.

Expertise

The Bank does not entail the creation of a new investment firm, but rather a comprehensive financing instrument to bring new EU and MS’s funding opportunities under one simplified point of access.

An Electrification Forum of relevant experts would inform the bank’s work by analysing industries in need of support and identifying existing market barriers.

Eligibility

The allocation of funds should differentiate between industrial consumers based on their heat processes to ensure a fair competition among bidding projects. Therefore, there should an auction call for those industries with low-to-medium-heat processes (below 500 degrees Celsius) – such as chemicals, transport, food and beverage that already have access to commercially mature large-scale heat pumps or electric boilers – and a separate auction call for  industries with higher temperature heat processes – such as cement, steel, glass, iron that may need more innovative electrified solutions.

Project applications should contain a credible electrification strategy backed by a quantitative business case and impact assessment.

Funding

Funding should be allocated based on auctions at EU level and auction-as-service where MS can allocate national resources to projects on the basis of auctions organised at EU level. The Commission should decide on the exact source of funding.

Beyond the upcoming Competitiveness fund, there are at least five EU funding mechanisms in place that should be considered for investments into industrial electrification: The Innovation Fund, Horizon Europe, Recovery and Resilience, Just Transition Fund, and the Modernisation Fund.

Unspent funds by Member States under the Multiannual Financial Framework (MFF) and Recovery and Resilience Facility (RRF) could also be channelled to electrification projects in those MSs.  

At the Member-State level, a significant portion of ETS revenues should also be re-directed towards industrial decarbonisation within that MS.

De-risking

The EIB should be closely involved in the vetting and implementation of projects under the Electrification Bank, as it can improve electrification projects’ risk profile through budget guarantees, equity investments or loans.

In particular, the EIB should allocate budget guarantees to derisk long-term PPAs. By securing the industrial buyer’s creditworthiness, guarantee schemes can reduce the market barriers which prevent industrial consumers from signing PPAs, while ensuring effective price signals remain on the electricity market.

Also see: New report shows ways to facilitate renewable integration into grids

„Direct electrification can improve industries’ energy efficiency, reduce operational costs over time, and enhance energy security by lowering dependence on imported fossil fuels. The Electrification Bank is the way to add a demand pull to the supply push“, Kristian Ruby, Secretary General of Eurelectric said. (hcn)





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The project will be supported by first loss risk cover deployed under the EBRD’s InvestEU Framework for Sustainable Transition, which aims to foster sustainable investment and convergence to EU norms, and will contribute to the Bulgarian green energy transition. This is the first use of the InvestEU guarantee by the EBRD in Bulgaria.

The Tenevo plant will add 238 MW of solar generation capacity to the Bulgarian national energy system, with a long-term plan to add on a 250MW capacity of behind-the-meter energy storage. This is an important project to advance towards Bulgaria’s ambitious net-zero greenhouse gas emissions target by 2050 and reduce reliance on coal generation, which still dominates in the power system.

Gender SMART project

The project will be the first renewable energy plant over 100 MW that will sell all its output in the market without a support scheme or a corporate power purchase agreement in Bulgaria. The project is designated as Gender SMART as the Sponsors and the Company committed to sign the UN Women’s Empowerment Principles to promote gender equality across the male-dominated energy sector in Bulgaria. It will also strengthen the private sector presence in the renewable energy sector in Bulgaria.

Tenevo Solar Technologies EAD is a joint stock company incorporated in Bulgaria to construct and operate this plant. It is equally owned by two partners. One is Renalfa IPP, an Austrian joint venture between Renalfa Solarpro Group, a Vienna-based clean energy and e-mobility company, and RGreen Invest, a French renewables infrastructure fund. The second is Eurowind Energy, a Danish renewable energy developer and independent power producer.

Also see: EBRD funds EV charging infrastructure in eastern Europe and Baltics

“We are delighted to finance this sizeable merchant solar project, which highlights the Bank’s continued support for Bulgaria’s green transition, in today’s context of concerns over regional energy security in light of Russia’s war on Ukraine as well as to support Bulgaria’s ambitious renewables and decarbonisation targets,” said Grzegorz Zielinski, Head of Energy Europe in the EBRD’s Sustainable Infrastructure Group.

Target of 34.7% renewable power by 2030

“We are excited to partner with the EBRD and Raiffeisen Bank International on this ground-breaking project, which reflects our shared vision for a more sustainable future in Bulgaria. This collaboration represents a key landmark for the renewable energy investment community in the region, and we look forward to working together to bring our plans to reality,” said Kalina Pelovska, executive director for Tenevo Solar Technologies EAD.

Also see: Large battery storage systems in Europe are all the rage

Renewable energy is expected to play a critical role in the decarbonisation of the economy of Bulgaria. The country is aiming for renewables to make up 34.7 per cent of its electricity consumption by 2030, more than double its 2020 target of 16 per cent.

Also see: Central and Eastern Europe increasingly in the solar gigawatt class

This rising ambition is driving renewed interest in the sector, seeing about 1.3 GW of additional solar PV capacity being built over the past two years. In addition, this month Bulgaria’s decarbonisation efforts have taken an important leap forward with the conclusion of the country’s first renewable energy with co-located battery energy storage systems tender, which awarded grants to over 3 GW of new solar PV projects. This is part of Bulgaria’s Recovery and Resilience Plan targets, which is also supported by EBRD, and aim for commissioning of at least another 3.5 GW of renewable capacity by 2026.

InvestEU Programme supports sustainable investments

The EBRD is a leading Implementing Partner for the EU’s InvestEU Programme, which supports sustainable investment, innovation and job creation in the European Union. It aims to trigger more than €372 billion in additional investment between 2021 and 2027. Between 2022 and 2027 InvestEU guarantees worth €635 million will be leveraged by the EBRD to finance investments of up to €2.7 billion in eligible sectors. (hcn)





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Since this year, for the first time, agri-PV systems in Germany have also been subsidized through innovation tenders for so-called special solar systems under the Renewable Energy Sources Act (EEG). Twelve Agri-Photovoltaic projects with a capacity of 22 megawatts were awarded a contract and thus a market premium in the tender round in May 2022. In the new EEG 2023, the promotion of agri-PV through tenders will now be continued or permanently established.

In principle, this is welcomed by the industry as an important step. However, there is also criticism. BayWa r.e., for example, decided against the participation of Agri-PV plants in the innovation tenders “due to the complex legal conditions”, as Fabian Neu, Project Developer Germany, reports. He points out that Agri-PV plants are more capital-intensive than ground-mounted solar plants due to their special requirements as well as more complex technology.

Especially high-mounted systems have difficulties

The inclusion of Agri-PV in the new EEG leads to a significant increase of the area potential in Germany, which is positive. However, Neu says that it will be rather difficult in the near future for the highly elevated plants (for example, in fruit and wine growing) due to the material price increases, even with the additional premium for horizontal plants within the framework of commercial projects.

The bonus for agri-PV under the tenders is clearly set too low here, he adds.  “With the new EEG 2023, we see the focus in the near future for larger solar projects primarily on ground-mounted Agri-PV systems for arable crops and permanent grassland,” Neu says.

Building law as a strong brakeman

Antonia Kallina of the Kehl Institute for Applied Research (KIAF) points to the hurdles for Agri-PV under building law. KIAF is currently involved in three research projects on Agri-PV and is working closely with Fraunhofer ISE in Freiburg.

Did you miss that? Research project to accelerate the market introduction of agri-PV

In any case, the lawyer does not see the innovation tenders as a “gamechanger” for Agri-PV. “Up to now, Agri-PV plants have had to comply with the requirements of the EEG as part of the innovation tenders, specifically the subsidy law requirements of Section 37 of the EEG, which refer to the requirements of building planning law. These restrictions will likely mean that there will be no sustained push through the innovation tenders,” says Kallina.

Loan financing of projects also more difficult

Credit financing of Agri-PV projects is also made more difficult by the lack of privileges for Agri-PV plants in outdoor areas under the Building Code (BauGB), he said. This leads to the fact that mostly only temporary approvals for Agri-PV plants are granted.

This means that there is a lack of planning security for both the banks and the project developers. The only exception is if the local municipality has drawn up a project-related development plan for the construction of the Agri-PV plant. However, this is time-consuming and cost-intensive, according to Kallina.

Therefore now the voices increase, which demand a legal privileging of solar plants in the external area. Recently, for example, the district administrator of Lüchow-Dannenberg (Lower Saxony), Dagmar Schulz (non-party), pleaded for this in order to bring forward planned projects more quickly.

Selected suppliers Agri-PV

BayWaRe

BayWa r.e. offers the option of purchasing individual components for Agri-PV systems, such as semi-transparent special modules, through the company’s solar wholesale business. The planning and technical conceptual design as well as the construction of the Agri-PV system are then carried out by the farmer via a local installer. BayWa r.e. offers an “all-round carefree package” from the approval planning for the area and the grid connection to the construction planning to the construction of the Agri-PV system and the subsequent operational management as project developer or operator. However, in addition to the possible lease income for the farmer, there is an opportunity for investment participation. For the development of an Agri-PV plant within the framework of a project company, suitable areas of 10 hectares or more are being sought.

Zimmermann PV-Steel Group

The Zimmermann PV-Steel Group (Baden-Württemberg) develops, produces and sells substructures for larger Agri-PV systems with modules in horizontal elevation in various designs. Areas of application are fruit, berry, vegetable and arable farming.

A tracker system is also offered that places the solar modules in a vertical position for harvesting and tillage in order to use the maximum working width between the rows. In normal operation, the system tracks from east to west, thus also yielding up to 20% more energy than fixed systems.

Next2Sun

The Saarland-based company Next2Sun offers vertically mounted agri-PV systems with bifacial solar modules as a complete system – with trackers if desired – including inverters. Application areas are mainly permanent grassland and arable farming, whereby the Agri-PV systems can also be used as solar fences for property demarcation. The portfolio ranges from land leases for Agri-PV systems and their turnkey implementation to the sale of components and technical services for project developers and the installers of systems.

Other suppliers include AgroSolar Europe, Tube Solar, REM Tech, SunAgri, MKG Göbel. (hcn)

Also interesting; Viennese researchers have compiled facts about agriphotovoltaics





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