Renewable energy investor Private Equity Fund – Growth and automotive components producer Etem Gestamp have signed a ten year power purchase agreement for 4 GWh of solar energy annually.
Etem Gestamp, a joint venture of Greek aluminum extrusion company Etem Group, and Spanish automotive components supplier, will buy all the quantities produced in the solar power plant which is under construction, local media reported.
According to consultant Elnova which prepared a deal, this is the first contract between a producer of green energy and an industrial consumer in Bulgaria. However, in March telecommunication service provider A1 Bulgaria and domestic clean energy investment group Renalfa also signed a long-term PPA for solar energy.
Etem Gestamp will also get guarantees of origin for all electricity bought from PV facility
Private Equity Fund – Growth, which mainly invests in digital and green technologies, plans to start production in the solar facility by autumn 2022. So far it has invested in renewable energy projects with a total installed capacity of 5 MW.
Etem Gestamp will also get guarantees of origin for all electricity bought from photovoltaic facility, while the price of the electricity is fixed.
The CEO of Etem Gestamp Emmanouil Fountoukis said that integrating solar energy is their next step toward more sustainable aluminum production, with facilities switching to renewable power. This key energy contract is part of our ESG strategy focused on actions that will ensure sustainability and a positive impact on the local and global communities, he added.
Elnova: There is a lack of expertise on PPAs in Bulgaria
According to Dimitar Vertigov, executive director of Private Equity Fund – Growth, the agreement secures cash-flow of the project for ten years, which is difficult to achieve on the market. This will allow Growth to continue investment in renewables, added Vertigov.
Petya Dimova, CEO of Elnova, said that PPA is new product on Bulgarian market. There is a lack of expertise on the possibilities and the most suitable model for concluding such a contract, said Dimova.
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