Tuesday, July 23, 2024
HomeRenewablesDeutsche Telekom companies sign historic cross-border virtual PPAs with Rezolv Energy
Powered by

Deutsche Telekom companies sign historic cross-border virtual PPAs with Rezolv Energy

T-Mobile Czech Republic, Slovak Telekom and CE Colo Czech Republic, all part of the Deutsche Telekom Group, have signed cross-border virtual Power Purchase Agreements (VPPAs) with Actis-backed Rezolv Energy, the Prague-headquartered renewable energy producer.

These are the first cross-border VPPAs that have been signed by Czech or Slovak companies. The power will come from the 461 megawatts (MW) VIFOR wind farm, which has been developed by Rezolv and Low Carbon in Buzău County, Romania, with the VPPAs enabling the construction of the first phase of the project. In the second phase, a further 700 gigawatt-hours (GWh) per year will be available for corporate buyers.

The VPPAs will see the three firms buy 100 GWh of clean power per year for 12 years: T-Mobile Czech Republic has secured 50 GWh per year, Slovak Telekom 40 GWh per year and CE Colo Czech Republic 10 GWh per year.

According to a press statement of Rezolv Energy, the VPPAs represent a significant step forward in Central and Southeastern Europe, where most previous PPAs have been physical agreements requiring the buyer and producer to be in the same or neighbouring countries with connected grids.

“We are proud to become an enabler of a new renewable energy site and became a frontrunner in this area,” commented Pavel Hadrbolec, CFO of T-Mobile Czech Republic and Slovak Telekom. “This is a further step in our decarbonisation journey. The deal also brings us relevant risk diversification to our energy procurement strategy and energy prices hedging.”

“These are the first cross-border virtual PPAs that have been signed by Czech or Slovak companies and they are an important signal to other businesses in these two countries,” stated Alastair Hammond, CEO of Rezolv Energy. “They do not need to wait for renewable energy capacity to start coming on stream in volume in their home market. These agreements will enable Phase 1 of this project, but Phase 2 will make a further 700 GWh available per year. The widespread corporate demand for green electricity can therefore be met now.”

Once operational, VIFOR will be one of Europe’s largest onshore wind farms. Close to the Carpathian Mountains and benefiting from exceptional wind yields, the project will generate enough clean energy to power more than 270,000 homes and will avoid approximately 540,000 tonnes of CO2e annually. Phase 1 will install 192 MW in capacity with planned expansion to 461 MW in Phase 2. Construction is scheduled to be completed within 18 months, with VIFOR coming on stream before the end of 2025.

Finance loan facilities of up to 291 million euros have already been secured to support the Phase 1 construction from a consortium of eight lenders led by Erste Group, UniCredit Group and the European Bank for Reconstruction and Development, as well as the International Finance Corporation (IFC), Intesa Sanpaolo Group, OTP Bank, Raiffeisen Bank International AG and Garanti BBVA Romania.

Sign up for our newsletters

    Monthly newsletter – Delivering the most important energy stories of the month selected by our Editor-in-chief
    Weekly Oil&Gas roundup - All major news about the oil and gas industry, LNG developments, the upscaling of new gases and related EU regulations arriving in your mailbox every Monday.
    Weekly Renewables&Climate roundup - All major news about investments in renewable energy sources, environment protection, green hydrogen and new innovative ways to tackle the climate crisis arriving in your mailbox every Tuesday.

    Most Popular