November 22 (Renewables Now) - Specialised German lender UmweltBank this week said it has agreed to provide a 20-year loan for an unsubsidised solar farm by BayWa re, and it also presented a model contract for electricity supply from such projects.
The bank earlier this year announced a standardised financing solution for new ground-mounted solar schemes in Germany which have long-term offtake agreements in place. Now it is unveiling a model power sales contract, developed in consultation with both power suppliers and power consumers, and based on the power purchase agreement (PPA) format, to be used as a template in future deals.
UmweltBank is providing long-term non-recourse financing for Baywa re’s 8.8-MWp Barth 5 solar park, which is backed by a PPA with a five-year term with BayWa r.e. Clean Energy Sourcing GmbH (CLENS). The lender expects to finance 20 MWp of projects with PPAs this year and it sees significant growth in offtake contract signings on the domestic market in 2020.