Acea Energia and Erg (the latter through the subsidiary Erg Power Generation) have signed two agreements for the supply of 1,5 TWh of energy in the three-year period 2020-2022. These are two Power Purchase Agreements (PPAs), i.e. long-term contracts in which a company agrees to purchase electricity directly from a producer of energy from renewable sources at a fixed price per kWh.
The two groups underline in a note that the agreements for the "supply of electricity between mutually complementary operators - Acea Energia a player in the sales sector and Erg a producer from renewable sources - guarantee important synergies through the enhancement of their respective assets, such as the portfolio customers and production from renewable sources".
The agreements provide for the sale of most of the energy at a price defined within a range and allow optimization of the risks for both companies.
"In addition to stabilizing the sale price of a part of its generation portfolio from renewable sources, with this agreement Erg defines the procedures for selling the energy produced by the first wind farm subject to reblading - commented Luca Bettonte, CEO of Erg – We thus lay the foundations of the 'pay as produced' formula, a type of contract which stabilizes sales prices and which may find further applications in the future, even in the longer term, for the sale of the large amount of energy which will be produced by the plants wind farms subject to repowering".
Valerio Marra, president of Acea Energia, added: "We are very satisfied with the contracts we have finalized with Erg which allow us to diversify the energy procurement for our end customers and to guarantee a more stable price dynamic, using a such as the PPA which promotes the development and production from renewable sources and therefore supports the energy transition process in which the Acea Group is engaged".
