Northwestern Germany has throughout modern times been associated with energy-intensive heavy industry such as raw material extraction and refining.

Centrica's signing of a power purchase agreement with Enevos for a 4 MW solar farm, operational at zero-subsidy since May this year, is thus not so odd as such.

The contract has a 10-year term, and Enevos will manage electricity resales to that aforementioned industry. Centrica points out that, even though 4 MW is not a lot of capacity, the deal itself sets new precedence, as the PPAs enable the industry to be competitive without state support. 

"This project is a first step in the direction of building a portfolio of unsubsidized projects. We are now fast reaching a tipping point of being able to support the roll-out of subsidy-free renewable power in significant quantities, and we are excited to play a key role in enabling that to happen," writes Jens Tang, head of Route-to-Market and Origination at Centrica Energy Trading, in a statement.

"Accessing subsidy-free renewable power in a liberalised market makes PPAs attractive for corporations, industrials and utilities with ambitious climate goals. For both the developers and for us as a trading company this clearly is the future of renewables in Europe," he adds.

The Nordic region's adoption of PPAs is still underway, however, Partner Mikkel Kring from Spanish company Our New Energy said earlier this month that it is just around the corner.

English Edit: Daniel Frank Christensen

Nordic PPAs bound to breakthrough within 18 months

Centrica signs largest offshore wind PPA to date 

Data centers pave the way for PPAs in Denmark 

Danske Commodities continues UK offensive