CMS advises Prologis on implementation of innovative PPA model with ENGIE
CMS advised Prologis in Poland on its entry into a pioneering power purchase agreement (PPA) with ENGIE. This agreement combines the long-term purchase of electric energy from renewable energy sources (RES) with flexible market mechanisms, setting a new benchmark for the commercial property market in Poland.
The CMS team acted as legal advisor at all stages of the process - from drafting the key terms of a future agreement and preparing a draft agreement to negotiating its wording with bidders in a competitive process and advising on the selection of the entity with which the PPA was concluded.
The PPA will come into effect in January 2026. Agreed for a period of five years, it will secure the sale of approximately 335 GWh of electric energy over five years from the Engie-owned wind farm at a fixed price. Remaining demand can be met by purchases on the wholesale market. Prologis is the first logistics property developer in Poland who announced signing a physical PPA for the sale of renewable energy.
The project is part of Poland’s accelerating decarbonisation process in the industrial and commercial sectors, where PPAs are becoming a crucial tool for stabilising energy costs and reducing emissions. In an environment of price volatility and increasing regulatory requirements, PPAs help companies better control energy costs, improve competitiveness, and support the national energy transition through long-term purchases of energy from renewable sources.
The CMS team was led by Kacper Stanosz and supported by Dominika Paczena (Energy and Infrastructure). Strategic advice and transaction supervision was provided by Michał Andruszkiewicz.
