17 March 2021

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

Centrica Energy Trading enters into a 10-year renewable power purchase agreement with Better Energy for a total of 112 GWh per year. Centrica will offtake power from two new solar parks and add new green energy to the European power grid.

Better Energy, a leading Nordic independent power producer, and Centrica Energy Trading have agreed to a long-term 10-year PPA for renewable solar power. The power will come from two new solar parks that are to be developed by Better Energy as part of the agreement.

Better Energy has developed several solar parks in Denmark without state subsidies, and the new agreement reaffirms that solar energy can compete with the cheapest energy sources in Northern Europe. The two new Better Energy solar parks are expected to produce 112 GWh per year (equivalent to the power consumption of 70,000 Danish households) and this output will be handled and traded by Centrica in the next decade.

According to the Danish Energy Agency, Denmark’s electricity consumption is expected to double in the coming decade. If political ambitions are to limit fossil fuels in the heavy transportation sector by converting them to e-fuels, power needs will increase even more. The Danish Government’s climate programme estimates that Power-to-X can reduce CO2 emissions by more than 3.5 million tonnes in 2030. Actions must match ambitions, which means that a significant increase in power production is needed. This required increase in production is more extensive than what current Danish offshore wind plans are expected to deliver. Therefore, the development of new solar parks is critical to ensuring higher levels of renewable green energy in our future electrical power system.

According to Executive Vice President for Power Solutions in Better Energy Peter Munck Søe-Jensen, we need a massive expansion of renewable energy capacity to accelerate the green transition:

”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 buying power from solar parks under development, Centrica ensures that new green energy is 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 an important step in the right direction.”

Commenting on the new 10-year PPA solar agreement with Better Energy, Director of Route-to-Market & Asset Management of Centrica Energy Marketing & Trading Kristian Gjerløv-Juel explains:

”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 agreement showcases that subsidy-free solar park development is possible. We still need more, but this is a great project. The agreement underlines our dedication to playing an active role in Europe’s green transition towards a CO2-neutral future.”