Business

Joint Venture For Solar PV In Germany

Anu Bhambhani
  • Ökostrom Franken GmbH has been launched in Germany as a dedicated solar power company
  • 6 municipal utilities that are its shareholders are N-Ergie, Fürth infra, Stadtwerke Schwabach, Erlanger Stadtwerke, Stadtwerke Stein and Gemeindewerke Wendelstein
  • Projects under the JV will not be subsidized under EEG but sold through PPAs

In Germany's Franconia region, 6 municipal utilities have come together to launch a new solar focused joint venture (JV) called the Ökostrom Franken GmbH & Co. KG that won't be receiving any funding from the country's Renewable Energy Sources Act (EEG), also know as Feed-in Tariff Law.

Solar power generated from the facilities of the JV will be marketed through special electricity supply contracts as power purchase agreements (PPA). The new entity will supply solar power from facilities to the 6 utilities, making the latter both shareholders as well as offtakers with their share in the holding company.

With a dedicated solar power company, the partners believe they will be able to expand their regional PV portfolio and contribute to the country's national climate targets. The 6 utilities and their respective shareholding in the JV are as follows:

  • infra fürth gmbh (25.1%)
  • N-ERGIE Regenerativ GmbH (25.1%)
  • Stadtwerke Schwabach GmbH (14.9%)
  • Erlanger Stadtwerke AG (14.9%)
  • Stadtwerke Stein GmbH & Co. KG (10.0%)
  • Wendelstein KU municipal works (10.0%)

The Franconian utilities identify a 6.2 MW solar power plant in the Lower Franconian district of Schweinfurt in Röthlein municipality as the maiden facility for the JV that's planned to enter construction in 2021. Power produced by the plant will be sufficient to supply around 1,600 households with green electricity, stated the partners.