BayWa r.e. plans tender for 10 TWh of renewable power in Europe

Renewables developer and power producer BayWa r.e. AG said today it intends to issue a tender for corporate power purchase agreements (CPPA) in the autumn of 2022.

BayWa r.e. will be looking to award 10-year contracts for a total of 10 TWh of electricity generated by a portfolio of renewables located in Germany and Spain. According to it, this will be Europe’s first-ever tender for such contracts launched by a developer.

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The company, which is owned by BayWa AG and Energy Infrastructure Partners, said it is witnessing a very high corporate demand for renewable power around the world and especially in the EMEA region. Just a few weeks ago, it announced a PPA with Swiss food and beverage producer Nestle SA (SWX:NESN) that will support the construction of a new 50-MW solar farm in Spain.

“This is truly an unprecedented time for energy markets across Europe. Corporates are facing price spikes and increasing uncertainty, and at the same time they want to play an active role in tackling the climate crisis. Renewable energy is the only answer, and long-term PPA contracts are a key tool to achieve reliable electricity supply and to enable more renewable energy,” commented Daniel Parsons, head of PPA at BayWa r.e.

The terms and principles of the tender are still being finalised, the firm said, adding that it will provide more information later this year.