Axpo Deutschland, an energy trader, has recently entered into a significant power purchase agreement (PPA) with Siltronic, a silicon wafer manufacturer. This 10-year agreement entails Axpo Deutschland generating 60GWh of renewable energy annually from photovoltaic (PV) plants in Germany and supplying it to Siltronic's production facilities located in Burghausen (Bavaria) and Freiberg (Saxony). The energy will be provided at a fixed price and according to a predetermined schedule, with deliveries commencing in 2024.
Janosch Abegg, the senior originator of Axpo Group, emphasized the importance of corporate PPAs in driving the energy transition and fostering a more sustainable future. Abegg highlighted the need for simplified processes that enable companies to easily establish, implement, and integrate PPAs into their energy supply mix.
This agreement represents another milestone for Axpo Deutschland, following its initial PPA venture in the German solar market back in 2019. Furthermore, the company has recently expanded its operations to Switzerland, with ambitious plans to develop 1.2GW of solar PV capacity in the Alps and residential areas by 2030. This substantial undertaking is expected to require an investment of approximately CHF1.5 billion (equivalent to US$1.59 billion) and will lead to a remarkable six-fold expansion of the company's current 0.2GW solar PV capacity in Switzerland. Axpo Deutschland's decision to pursue this expansion was influenced by temporary simplifications in the political framework governing alpine installations.
The power purchase agreement between Axpo Deutschland and Siltronic underscores the growing trend of corporations actively seeking renewable energy solutions and establishing long-term partnerships with energy providers. Such collaborations play a crucial role in accelerating the energy transition and fostering a sustainable future for businesses across various sectors.
