Renewable

January 13 (Renewables Now) - German electricity trading company Next Kraftwerke GmbH has signed a power purchase agreement (PPA) with plant operator BioConstruct GmbH to offtake 40,000 MWh of electricity from biogas.

The contracted electricity will be supplied in the first quarter of 2022 from 86 biogas cogeneration units at a fixed price, Next Kraftwerke said on Wednesday.

As the price level on electricity markets was extremely high for a short period in December, the price agreed in the PPA considerably exceeds the remuneration received by the biogas plants involved in the deal under the EEG-scheme. All plants will continue to receive the state remuneration during the period of the contract with Next Kraftwerke.

The Cologne-based electricity trader will continue to look for opportunities for more PPAs on the market. However, since the price on the electricity markets has fallen, deals in the bioenergy market are more likely for biomass plants because they receive a lower EEG-remuneration.

Melle, Lower Saxony-based BioConstruct plans, builds and maintains biogas plants with a capacity ranging from 30 kW to the megawatt-scale and waste-to-energy plants mainly for customers in the agricultural sector. The company plans and builds also wind and solar parks across Europe.