PNE signs post-EEG power contract for Papenrode wind

German renewable energy firm PNE AG (ETR:PNE3) has secured a direct power purchase agreement (PPA) for the output of the Papenrode wind park after the end of its fixed EEG remuneration.

The PPA has been agreed with LichtBlick, a German company that supplies green electricity and gas and develops smart energy solutions for households and businesses. Power supply under the contract will start from January 1, 2021 from 10 wind turbines at the park with a combined capacity of 13 MW. PNE calculates that roughly 17.5 GWh of power can be supplied annually.

Earlier this week PNE announced the acquisition of the 16-turbine Papenrode wind farm in Lower Saxony, which has been operational since 2000. The LichtBlick PPA will allow the power plant to continue producing clean electricity, avoiding immediate dismantling of the turbines after the expiry of the EEG remuneration.

PNE intends to repower the facility, boosting generation up to five times, after the PPA delivery period has expired. The firm sees significant potential for wind repowering on the domestic market after the end of EEG subsidies. About 4.5 GW of wind farms will need to find a way to generate adequate electricity revenues from 2021, the company calculates.

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