Statkraft Backs Solar Park with 5- year PPA

Europe’s leading renewable energy player, Norwegian firm Statkraft, has signed a 5-year power purchase agreement (PPA) for the Strasen Solar Park. The Norwegian energy company is thus supporting the construction and operation of the 30 MW solar park.

According to the official statement of Statkraft, the solar parkwill operate entirely without EEG subsidies and is expected to start commercial operation this year. The solar park in Western Mecklenburg-Pomerania will generate around 33 GWh of solar power annually – enough to supply approx. 11,000 households with green power.

The purchase of the generated power by Statkraft provides the necessary framework to realise this project. The Norwegian energy company will use the solar power from the PPA to offer green power solutions to industrial companies.

“Providing project developers with the right power purchase agreements to enable the construction and operation of their renewable energy plants while optimising the risks over many years is one of Statkraft’s core competencies,” says Patrick Koch, head of Statkraft’s German origination business.

Good financing conditions for solar parks

In view of the ambitious renewable energy targets in Germany, good financing conditions for plants built without EEG subsidies are playing an increasingly important role. The financing of the Strasen solar park is timely. The investor and fund manager Okorenta is providing the equity for the solar park, and UmweltBank is co-financing the operation of the Strasen solar park in the long term, despite the comparatively short term of the power purchase agreement.

During the transaction, the Munich-based bank von der Heydt supported the project developer Sunovis in the sale of the solar park, the debt financing and the closure of the PPA.

“The cooperation with Sunovis, Ökorenta and UmweltBank has proven to be very efficient and positive. Only three months passed from the first enquiry to the conclusion of the contract. With the current large number of new projects, reliable partners are the key to keeping the transaction costs of a long-term off-take contract within limits,” adds Koch.