Centrica Energy Trading signs long-term Solar PPA with Better Energy

Centrica Energy Trading has announced today that it has signed a 10-year renewable PPA deal with Better Energy for a total 112 GWh per year. Under the agreement Centrica will offtake power from two new solar farms and add new green energy to the European power grid.

Better Energy, a leading Nordic, independent solar energy company, and Centrica Energy Trading has agreed to a long-term 10-year PPA deal for renewable solar power. The power is to come from two new solar farms, which are to be developed by Better Energy as part of the deal.

Better Energy has developed several solar farms without Danish state subsidies for corporations and with the new deal it reaffirms that solar energy can compete with the cheapest energy sources in Northern Europe. The two new Better Energy solar farms are expected to produce 112 GWh a-year (the power consumption of 70.000 Danish households) and will be handled and traded by Centrica in the next decade.

According to the Danish Energy Agency Denmark’s power consumption is expected to double in the coming decade. If the political ambitions to limit fossil fuels in the heavy transportation sector by converting it to e-fuels, power needs will increase even more. The Danish Government’s climate programme estimate that Power-to-X can reduce Co2-emissions by more than 3,5 million tonnes in 2030. To meet this goal, an increase in electrical power production is required. An increase bigger than what the current sea wind turbine farms can deliver. Therefore, the development of new solar farms is critical in securing that a larger part of the future electrical power is green energy.

“The world will have a massive need for renewable energy in the near-future. Therefore, it is critical that both corporations and energy commodity traders focus on additional energy today. By committing to buy power from under-development solar farms, Centrica ensures that new green energy is being added to the European power grid. To reach both short-term and long-term European climate goals, we need to expand solar power – quickly – and our deal with Centrica is a big step in the right direction.”

Per Munck Søe-Jensen, Executive Vice President for Better Energy

“The renewable PPA deal between Centrica and Better Energy is a great example of renewables competing with conventional power production and delivering green energy to European consumers. Also, the deal showcases that non-state subsidised solar farm development is possible. We need more still but this is a great project. The agreement underlines our dedication to play an active part in Europe’s green transition towards a co2-neutral future.”

Kristian Gjerløv-Juel, Director of Route-to-Market & Asset Management of Centrica Energy Marketing & Trading