International law firm CMS advised ACCIONA on a five-year Virtual Power Purchase Agreement (VPPA) with multinational automotive manufacturer Brembo in Poland. VPPA is an agreement concerning the purchase of electricity generated from renewable sources directly from the generator.
Under the agreement ACCIONA will inject 100,000 MWh of green power a year into the grid and provide the associated Guarantees of Origin to Brembo Poland as Virtual PPA does not require the physical delivery of electricity to the client. The electricity will come from ACCIONA’s 63MW Krobia I windfarm in Wielkopolskie. The contract went live on February 1st, 2021.
PPAs are getting more and more popular in Poland as offering substantial benefits for all parties involved. For energy generator it strengthens the trading price structure and reduces the company’s exposure to market price volatility while energy consumer may optimize costs, access clean power, and progress towards emission reduction goals” – comments Łukasz Szatkowski, partner in the energy and projects team in Poland.
ACCIONA owns and operates 101MW of wind assets in Poland. The company supplies 100% renewable energy to more than 500 companies and institutions worldwide, contributing to corporate strategies that focus on decarbonization and fight against climate change. With more than 10.7GW of renewable generation assets, ACCIONA is the world's greenest electricity utility, according to the New Energy Top 100 Green Utilities and analysis criteria for the Dow Jones Sustainability Index.
ACCIONA is also present in the Polish construction and real estate markets through its affiliate Mostostal Warszawa and ACCIONA Real Estate.
The advice on VPPAs concluded in Poland was provided by CMS energy & projects team coordinated by Łukasz Szatkowski, partner, supported by Piotr Prawda, senior associate, and Kacper Stanosz, associate from Warsaw energy and projects practice. The team was assisted by Dalia Majumder-Russell, senior associate from CMS UK, who advised on English law.
CMS is currently one of the most experienced law firms in the renewable energy market in Poland in regard to PPAs, M&A, investments, and regulatory advice in the energy sector.
The CMS team has also recently advised Macquarie’s Green Investment Group (GIG), on a 10-year physical corporate Power Purchase Agreement (PPA) with the Danone companies in Poland and separately on a route to market physical PPA with Axpo, one of the largest independent off-takers of renewable energy. Under the RtM PPA with Axpo, the wind farm will sell the remaining volume of electric energy and receive balancing services from Axpo.
In addition CMS lawyers worked for Signify, a Euronext listed company, in the purchase of renewable energy from Green Investment Group’s wind farm in Kisielice for the purpose of operations in Poland. The agreement was structured as a corporate Virtual Power Purchase Agreement (VPPA). It was one of the first agreements of this type concluded on the Polish market, and for the Signify group - its first in Europe.