Swedish state-owned utility Vattenfall AB sees a growing demand for renewable energy, especially solar power, from the German industry as companies are under pressure to go green and cope with high electricity prices.
In addition to wind energy, industrial companies are increasingly interested in procuring power from Vattenfall from new, subsidy-free ground-mounted solar parks through corporate power purchase agreements (PPAs), said Claus Wattendrup, head of Vattenfall's Solar and Batteries business unit.
However, disrupted supply chains and rising costs for solar components make the long-term calculation of investments in photovoltaic (PV) projects difficult. Vattenfall noted that it is holding talks with partners on ways to handle risks in the challenging environment.
The expansion of the solar business plays a key role in Vattenfall's decarbonisation efforts with Germany and the Netherlands being the core markets for the group's growth plans in the area. The group currently has 3 GW of PV capacity under planning or construction and plans to boost its pipeline to 10 GW by 2025. Part of the electricity generated by those assets will be tendered, starting with 3 TWh in 2022.
Choose your newsletter by Renewables Now. Join for free!