October 18 (Renewables Now) - Italian energy company ERG SpA (BIT:ERG) has signed a deal to sell the entire electricity output of its 13.2-MW Avigliano wind park in Italy to domestic utility ACEA Energia.
Under two power purchase agreements (PPAs), ERG’s subsidiary ERG Power Generation SpA will supply ACEA Energia with 1.5 TWh of electricity for three years, between 2020 and 2022. They call for the sale of power at a price established within a "collar" so that the risk profiles of the two parties are optimised.
The Avigliano wind park is a recently re-bladed power plant, located in Basilicata, southern Italy.
"The pricing dynamics, which are endorsed by the signing of these agreements, will in future be able to form the basis for medium-long term commercial relations between the parties, via the conclusion of new ten-year PPAs," says the press release.
ACEA Energia’s chairman Valerio Marra added that the contracts will help the utility diversify the energy supply for consumers and provide more stable prices, guaranteed by PPAs.