Axpo and Kolektor sign first financial PPA in Slovenia

04.09.2023 - Axpo has secured its latest long-term corporate power purchase agreement (PPA) for renewable energy in south-eastern Europe, it was announced today. The ground-breaking deal, the first ever financial corporate PPA in Slovenia, was concluded with the Kolektor group, a global supplier of specialised industrial products, headquartered in Slovenia.

Under the 10-year agreement, Axpo will hedge the long-term fixed price for up to 0.2 terawatt hours (TWh) of energy for Kolektor Mobility’s facility in Slovenia, which produces components and systems for electric vehicles. Its subsidiary, Kolektor sETup d.o.o., will ensure the physical supply of energy.

Axpo’s Head of Regional Origination CSEE, Călin Raţis, said: “We are one of the few companies able to support such a landmark deal in the region, leveraging our decade-long expertise, credit worthiness, sizable renewable energy portfolio and, last but not least, our proximity to clients. We will continue to support innovative and bespoke energy products and services, which ultimately help advance the region’s energy transition.”

The agreement marks a significant milestone for Kolektor sETup, establishing the company as a leading PPA facilitator and specialist offering a comprehensive array of services for energy producers and consumers. These include legal consultation, market expertise and insight, physical power supply assurance, balancing services, and expert aggregation capabilities.

Kolektor sETup Managing Director, Aleš Koželjnik, said: “This is Slovenia’s first-ever financial corporate PPA and a momentous turning point for the country’s renewable energy sector. A ground-breaking achievement, it underscores our commitment to the green energy transition by pioneering sustainable solutions and ensuring a brighter energy future for our customers."

Kolektor Mobility’s Purchasing Director, Igor Bogataj, added: “Last year was really turbulent for organisations buying energy on the open market. Energy costs suddenly became one of our main cost drivers. Signing a durable long-term purchase agreement was therefore extremely important for us in securing mid- to long-term price stability for electricity from renewable sources.” 

For Axpo, the agreement follows several important deals concluded in south-eastern Europe earlier this year. These include the first ever long-term wind power PPAs in Croatia and Serbia, adding 216 MW to the company’s regional renewable energy portfolio.

Axpo Senior Originator Vladimir Djordjevic said: “We’re excited to see an increasing number of organisations in the region acting on their sustainability goals and objectives. Long-term financial corporate PPAs ensure price stability which, given the currently tight and volatile markets, can act as a key differentiator in a company’s financial performance.”  

Axpo has a strong presence throughout central and south-eastern Europe. Offices in several countries, including Poland, Romania, Hungary, Austria, Bulgaria, Croatia, Serbia, Bosnia and Herzegovina, and Greece, offer customers a wide range of services, including the full supply of power and gas, energy trading, and green certificates. The company’s office in Budapest, Hungary, is the latest addition to Axpo’s regional network.

More information about Axpo’s PPA business can be found on our website.