Poland

Poland

Mercedes Benz signs Poland's first wind PPA

POLAND: Vehicle manufacturer Mercedes Benz will buy electricity generated at a 45MW project in Poland to power its manufacturing facility in Jawor in the south-west of the country.

Car manufacturer Mercedes Benz will power its factory in Jawor, Poland, with output from VSB Energie's project
Car manufacturer Mercedes Benz will power its factory in Jawor, Poland, with output from VSB Energie's project

The deal, for output from VSB Energie’s Taczalin wind farm, is the first corporate renewable power purchase agreement (PPA) in Poland and in the automotive sector in Europe, trade body WindEurope said.

Taczalin has been in operation since late 2013, and the carmaker will start sourcing power from it next year, developer VSB Energie stated.

The developer added the PPA was made possible by the Polish subsidy system for renewable energy that allows the producer to trade electricity freely on the market or sell through a power deal.

In December 2017, WindEurope and more than 50 multinational companies and industry organisations wrote an open letter to the European Union’s energy ministers calling for all barriers to companies forging renewable PPAs to be removed.

Following the Mercedes Benz-VSB Energie deal, CEO Giles Dickson added: "Renewable PPAs provide corporate energy consumers with reliable and competitively priced power, and enable them to lock in their energy costs at fixed prices over a long period.

"They also provide stable revenue for wind farms, which reduces financing costs. It’s a win-win all round."

Mercedes Benz produces four-cylinder engines for its cars at the factory in Jawor.

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