August 26 (SeeNews) - Swiss renewable energy producer Axpo said that it has signed a long-term power purchase agreement (PPA) with CEZ’s Fantanele-Cogealac-Gradina wind farm, part of Macquarie Asset Management’s energy portfolio in Romania.
The seven-year deal with CEZ’s onshore wind farm is Axpo’s largest in the region to date and covers more than 4 terawatt hours (TWh) of electricity production, Axpo said in a press release on Tuesday.
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"I am delighted that we have been able to sign this long-term energy pricing agreement in Romania. We are seeing an increasing number of renewable project owners looking for the price stability and assurance that allows them to continue growing their renewable production," Axpo Head Origination Western & Eastern Europe Domenico Franceschino said.
Axpo will hedge approximately 50% of CEZ’s combined installed capacity of 600 megawatts (MW) from the three wind farms owned and managed by a Macquarie Asset Management long-term infrastructure fund. The plants are located in Dobrogea, close to the Black Sea.
"This country has a lot of potential for renewable energies in general and wind power in particular. The PPA is a major milestone, both for the Romanian energy market and Axpo’s business here. With our long-standing PPA experience in many markets across Europe, we are well positioned to play a key role in Romania’s energy transition," Axpo Energy Romania managing director Radu Rat said.
At the end of March, Distributie Energie Oltenia, Ovidiu Development, Tomis Team, MW Team Invest, CEZ Vanzare, TMK Hydroenergy Power and CEZ Romania were acquired by a long-term infrastructure fund managed by Macquarie Asset Management, part of Macquarie Group.
Ovidiu Development, Tomis Team, MW Team manages the largest onshore wind farm in Europe, in the Dobrogea area, at Fantanele, Cogealac and Gradina. The wind farm represents an investment of 1.1 billion euro ($1.29 billion) and contains 240 wind turbines with a total installed capacity of 600 MW. The entire capacity of the wind farms was put into operation at the end of 2012.
"This long-term financial agreement contributes directly to the stability and resilience of our renewable portfolio. And, as the first of its kind in Romania, it stands for a positive signal to the local renewable market, heading full speed towards the energy transition," CEO of CEZ Romania CEO Ondrej Safar said.
Axpo is Switzerland’s largest producer of renewable energy and an international leader in energy trading and the marketing of solar and wind power. The company employs 5,000 employees and has customers based in 40 countries in Europe, North America and Asia. It has been present in Romania since 2003.
($=0.8509 euro)