- RWE has secured a PPA with VW to supply 170 GWh solar power annually from 2022 onwards
- It will source this solar power from Germany’s ‘largest’ independent solar park, owned by Luxcara
- PPA enables the subsidy free development of the project in Tramm-Göthen region
German renewable energy company RWE will supply 170 GWh of solar power to German car maker Volkswagen (VW) under what the company calls as one of the largest power purchase agreements (PPA) in the country. It plans to source this clean energy from the country’s ‘largest’ independent solar park in Tramm-Göthen, owned by independent asset manager Luxcara.
Having entered the PPA through RWE Supply & Trading division, RWE will source this power from 2022 when the PPA with VW kicks into effect. The subsidy free project itself is expected to be complete by the end of 2021. VW plans to use this green electricity to further its e-mobility initiatives under the company’s plans to become a carbon neutral entity by 2050.
“CO2 -neutral mobility and the energy transition can only be thought of together. On the one hand, we need cooperation with the energy industry, in which we support the construction of new wind and solar parks through long-term purchase agreements,” explained VW CEO Ralf Brandstätter. “On the other hand, give a green electricity supply for our customers is essential to the CO2-neutral using our ID. Family.”
Batting for bilateral contracts like this one to further subsidy free green energy projects, RWE said such deals also enable flexibility in terms of choosing location and that new projects can be implemented quickly.
Though a statement from Luxcara and RWE doesn’t specify the project from which clean energy will be supplied, it should be the 172 MW facility developed by RWE subsidiary Belectric and acquired by Luxcara in November 2020. It will be located in the municipalities of Tramm and Lewitzrand in Mecklenburg-Western Pomerania, use up to 420,000 solar PV modules.