As Centrica signs a corporate power deal with Deutsche Bahn, the future of low carbon energy is looking positive
Centrica Energy Trading (Centrica) has signed a two-year corporate power purchase agreement (PPA) with Deutsche Bahn, Germany’s national railway company. But what does this mean for Germany’s low carbon energy future?
Starting in January 2024, Centrica will offtake power from three onshore wind farms with an installed capacity of 60.7 megawatts. Developed by Prokon AG in Germany, the sites have a total of 45 turbines. This will provide approximately 70GWh of renewable electricity annually to Deutsche Bahn.
Jan Gibbert, Head of German Origination at Centrica, commented: “We are exploring how to make this scheme work best for our customers so that it fits in with their habits around the home. This approach helps manage residential electricity as demand is likely to become a major feature of the market in years to come.”
This comes as part of Centrica’s ambitious growth strategy in the German post-EEG market. This is unsurprising considering that Germany is rapidly becoming a powerhouse for the development and uptake of renewables.
Centrica currently manages approximately 2500 megawatts of solar and wind assets in Germany but aims to build on this position. It can provide highly customized agreements to support corporates in decarbonizing energy consumption and ensuring long-term price stability.
This will help Germany to deliver on national climate targets. Specifically, the agreement prescribes at least a 60 percent reduction in GHG-emissions by 2030 and carbon neutrality by 2045.
Jan added: “We’re applying our trading expertise and in-depth understanding of market dynamics. This both supports developers on their investment and helps corporates explore opportunities for green power procurement to deliver on their net zero targets.”