RWE to supply green electricity to VW from Luxcara solar project

License: Creative Commons CC0

April 29 (Renewables Now) - German energy group RWE AG (ETR:RWE) will supply electricity to Volkswagen Group (ETR:VOW3), or VW, from Germany's "largest independent solar park" under a 10-year power purchase agreement (PPA).

RWE Supply & Trading will source the electricity from German renewables investor and asset manager Luxcara GmbH, the owner of the solar farm, which will be built without subsidies in Tramm-Goethen, northeastern Germany, according to a joint statement by the companies today. The solar power plant is due to be completed by the end of 2021. It will be delivering up to 170 GWh a year from 2022 onwards under the PPA, which is described as one of the largest in Germany.

Luxcara acquired a 172-MW solar project in Tramm-Goethen from Belectric Solar & Battery GmbH in November last year.

The partnership between RWE and VW also covers more projects, which are currently in the planning stage at RWE and will be realised with the backing of long-term procurement contracts with VW.

The PPA was announced as VW today presented details of its decarbonisation plans for the company and its vehicles. The carmaker aims to be carbon-neutral by 2050 and says that key to achieving carbon-neutral e-mobility is the ability to charge vehicles consistently with renewable electricity. As a result, the company said it is becoming the first carmaker to directly support the expansion of renewable energy on a large scale. This will lead to the construction of new wind and solar farms in several regions of Europe by 2025 that are planned to together deliver around 7 TWh of additional green electricity by that year. Contracts for the first projects have been signed with RWE, VW also said.

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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