ENERGY

Daimler and Statkraft have reached a power purchase agreement (PPA) to use wind and solar energy to power Mercedes factories

Daimler | April 07, 2021

Through these agreements with renewables, an increasing number of major industrial players are seeking to decarbonize their activities. Daimler has also signed power purchase agreements (PPAs) with wind farms in Germany and Poland. However, this new agreement will provide them with 100% renewable energy 24 hours a day, seven days a week, as it combines wind and solar power, with hydro capacity in Norway providing backup.

Wind power will be generated by 200 wind turbines located across 24 different wind farms in Germany. There are existing wind farms that are no longer receiving public funding. As a result, the deal keeps them operational and aims to stop premature and needless decommissioning of the turbines.

Furthermore, by combining wind, solar, and hydro Daimler and Statkraft show that renewables can provide stable and reliable electricity to industry, in this case to a critical part of Europe's manufacturing base.

The German government, as well as other governments, should continue to endorse these types of PPA deals. They are an excellent way to boost market-driven renewable energy demand. However, many countries continue to face challenges to PPAs. Energy-intensive industries in Germany, are now penalized unnecessarily if they sign a corporate renewable PPA. Besides that, some governments refuse to have the necessary origin guarantees that underpin PPAs by ensuring the traceability of renewable energy.

“This is a fantastic deal”,  said WindEurope CEO Giles Dickson. Daimler gets clean energy. Europe's biggest industry has made significant progress in reducing pollution. 24 wind farms get a new customer and will continue to operate without public assistance. The wind is combined with solar and hydro to provide consistent electricity 24 hours a day, seven days a week. And Europe gains a prime example of how affordable and dependable renewables can decarbonize the economy.”

Spotlight

The way we supply and use energy in Australia continues to change. This includes changes in the type of energy we use, how we use it and where it comes from, as new technologies are adopted, as our economy grows and changes in structure, and as awareness of our energy use and its economic and environmental cost grows.

Spotlight

The way we supply and use energy in Australia continues to change. This includes changes in the type of energy we use, how we use it and where it comes from, as new technologies are adopted, as our economy grows and changes in structure, and as awareness of our energy use and its economic and environmental cost grows.

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STRATEGY AND BEST PRACTICES

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