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Poland Scores Big: Mercedes-Benz Agrees Europe’s First Automotive Sector PPA

Mercedes-Benz has announced Europe’s first automotive Power Purchase Agreement (PPA) with a Polish wind farm. It is also the first such deal signed in Poland. It will buy electricity generated at the 45MW wind farm to power its manufacturing facility in Jawor, 10km away from the wind farm. The longer-term goal is to source all of its power needs from renewables.

The Taczalin wind farm has been operational since 2013. The operator is VSB Energie Odnawialne Polska. Poland’s renewable energy scheme allows renewable energy suppliers to sell their electricity either on the market or as part of a PPA. Corporate PPA deals like this are expanding rapidly in Europe. There was a 130% increase in the volume of wind energy contracted through such PPAs in 2017 alone.

WindEurope CEO Giles Dickson said: “This is a double first. The first corporate renewable PPA deal in the automotive sector and the first major PPA in Poland. PPAs all started in the ICT sector. Now we’re seeing them in manufacturing sectors such as aluminium, chemicals, steel, pharmaceuticals – and automotive. Renewable PPAs provide corporate energy consumers with reliable and competitively-priced power – and enable them to lock in their energy costs at fixed prices over a long period. They also provide stable revenue for wind farms which reduces financing costs. So it’s win-win all round.”

WindEurope actively promotes wind power in Europe and worldwide. It has over 450 members, active in over 40 countries. Its membership encompasses wind turbine manufacturers, component suppliers, research institutes, national wind and renewables associations, developers, contractors, electricity providers, finance and insurance companies, and consultants.

VSB Energie Odnawialne Polska sp zoo (VSB EO PL) is part of the German VSB holding. Taczalin is its largest project.

Mercedes-Benz is a global automobile marque and a division of the German company Daimler AG. The brand is known for luxury vehicles, buses, coaches, and lorries. The headquarters is in Stuttgart, Baden-Württemberg. The name first appeared in 1926 under Daimler-Benz.

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