Swiss renewables producer and trader Axpo has signed a 10-year virtual power purchase agreement (PPA) with Kunovac, a joint investment between Finnish renewable energy fund manager Taaleri Energia and local developer Encro.
The deal is Axpo’s first 10-year power purchase agreement (PPA) in Croatia. The company is very active in the region. In early February it signed the first commercial PPA in Serbia.
The PPA with Kunovac covers almost 1.8 TWh of green electricity that would be produced at Croatia’s newest onshore wind farm. The facility in the Zadar region will have a capacity of 111 MW, Axpo said.
Jointly financed by the European Bank for Reconstruction and Development (EBRD), Zagrebačka Banka d.d. (UniCredit Bank) and the Croatian Bank for Reconstruction and Development (HBOR), the windfarm will produce enough green power for 85,000 households, helping to avoid more than 78,000 tonnes of CO2 emissions annually.
Franceschino: The deal is bringing best practice from the Nordics to the Central and South-east Europe region
Axpo’s Head of Origination for Western and Eastern Europe Domenico Franceschino said the landmark agreement reinforces the company’s ability to offer tailor-made and innovative energy products and services.
“The PPA capitalizes on Axpo’s broader experience across Europe, bringing – together with Taaleri Energia – best practice from the Nordics to the Central and South-east Europe region. In enabling energy price stability and predictability – which remain key in the current economic environment – we are also supporting the growth of renewables and the transition to a sustainable future,” he added.
According to Axpo’s Head of Regional Origination Calin Ratis, both the demand and potential for similar deals in Central and South-east Europe are immense and the firm looks forward to supporting other organizations in similar deals.
Axpo has offices in several countries including Austria, Bulgaria, Croatia, Greece, Hungary, Poland, Romania, and Serbia.