Automotive components producer Etem Gestamp signs PPA deal in Bulgaria

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 electricity annually.

Etem Gestamp, a joint venture of Greek aluminium 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 who prepared the 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 clean energy investment group Renalfa signed a long-term PPA for solar energy.

Etem Gestamp will also get guarantees of origin for all electricity bought from the 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 the 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 aluminium production, with facilities switching to renewable power. He added that 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.

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 the 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 a new product othe n Bulgarian market. There is a lack of expertise on the possibilities and the most suitable model for concluding such a contract, said Dimova.