ERG Power Generation has signed two power purchase agreements (PPAs) for the supply of 1.5TWh of clean energy to ACEA Energia between 2020-2022.
Acea Energia will purchase the entire energy generated by the 13.2MW Avigliano windfarm that was recently repowered.
ERG CEO Luca Bettonte said: “By way of this agreement, in addition to stabilising the sale price for a part of its renewable energy generation portfolio, ERG is defining the procedures for the sale of electricity produced by its first wind farm to have undergone a process of re-blading.
“In this way, we are laying the bases for the ‘pay as produced’ formula, a type of contract that stabilises sale prices and may, in future, find additional applications, even over a longer-term, for selling the huge volume of energy that will be produced by the wind plants concerned with Repowering.”
The two companies have optimised their risk profiles by agreeing to sell and purchase the energy at a price established within a ‘collar’.
ACEA Energia chairman Valerio Marra said: “We are very satisfied with the agreements concluded with ERG, which allow us to diversify the energy supply for our end customers and ensure a more stable price trend, using tools such as PPAs.
“These agreements promote development and production from renewable sources and therefore support the process of energy transition to which the ACEA Group is committed.”
In May 2019, Windpark Linda, which is part of the ERG Group, won a windfarm project in an auction dedicated to the onshore wind power sector in Germany.