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CMS advises EnBW on first long-term power purchase agreement for a subsidy-free solar park

14/02/2019

Hamburg – EnBW Energie Baden-Württemberg AG and Energiekontor AG have signed a 15-year power purchase agreement (PPA) in relation to a planned solar park in Mecklenburg-Western Pomerania. The plant will be built on a site of around 120 hectares in the Dettmannsdorf/Marlow area near Rostock. It will produce up to 85 MW of power a year to meet the needs of around 25,000 households.

The special feature of the project is that it does not make use of the statutory production subsidies available under the Renewable Energy Act (Erneuerbare Energien-Gesetz – EEG). The business model is based on EnBW buying the electricity produced by the solar farm under the terms of the PPA. As the first PPA in Germany for a solar park without EEG subsidies, this pioneering project demonstrates the possibilities for financing solar energy when EEG support is no longer available.

A Hamburg-based CMS team headed by lead partner Dr Holger Kraft advised EnBW, represented by inhouse counsel Hans-Jürgen Hertel, on all legal aspects of negotiating the power purchase agreement.

EnBW Energie Baden-Württemberg AG is one of the largest energy utilities in Germany and Europe. Headquartered in Karlsruhe, the company employs over 21,000 people and supplies around 5.5 million customers with electricity, gas and water, as well as energy solutions and energy-related services.

Energiekontor AG, located in Bremen, was established in 1990. Since then it has realised 121 wind farms with total output of 966 MW as well as three solar parks with a total capacity of around 30 MW. This represents an overall investment of more than EUR 1.6 billion. The company’s shares are listed on the General Standard of Deutsche Börse in Frankfurt.

CMS Germany

Dr Holger Kraft, Lead Partner
Dr Tilman Lorenz Petersen, Senior Associate
Dr Constantin Lentz, Associate, all Energy

Press Contact
presse@cms-hs.com 

Related people

Portrait ofHolger Kraft
Dr. Holger Kraft
Partner
Hamburg
Dr. Tilman Petersen, LL.M. (Columbia)
Dr. Constantin Lentz