10.10.2019 | Axpo Energy Romania cooperates with Dacia and VERBUND
Wind power for affordable cars
The Romanian car manufacturer Dacia, widely known as one of the car brands with the best price-performance ratio, has been being supplied with electricity and green certificates from Romanian wind power plants as since summer 2019. This power purchase agreement (PPA) between Dacia and Austria's largest electricity company VERBUND was concluded in the context of Axpo Energy Romania’s distribution partnership with VERBUND.
“Dacia – the status symbol for those who don't need a status symbol”, that has become quite a well-known marketing slogan for the cars of the Romanian low-price brand, at least in German-speaking countries. With the help of slightly ironic TV commercials, Dacia managed to convey to the general public that the company is one of the car manufacturers which offer the best value for money. However, what many car enthusiasts might not know is the fact that Dacia does not only offer very cheap cars but has developed into a committed sustainable company in recent years. In this context, Dacia has recently decided to build its Duster, Sandero, Logan & Co. models using green electricity from wind power plants located near the Romanian Black Sea coast.
Wind power delivery volume amounting to 344 GWh and 149,000 green certificates
Dacia, a subsidiary of the Renault Group, operates car factories in Romania in Mioveni, Oarja, Pitesti, Merisani, Contesti, Stefanesti in the district of Arges. With over 14,000 employees, the company is the largest employer in the Romanian industry, achieving sales of more than 5.7 billion euros in 2018 for the first time. From July 2019, Dacia will switch to renewable electricity for its automotive and component production in Romania. For the first year, VERBUND will supply a delivery volume of 344 GWh or 149,000 green certificates from the wind power plants in Casimcea, situated some 30 km west of the Black Sea.
The Casimcea power plant, one of Europe's largest onshore wind farms with 88 wind turbines and a total installed capacity of 226 MW, is owned by VERBUND. At the sidelines, Axpo’s subsidiary in Bucharest was involved in the deal too: Since 2017, VERBUND has been supplying Romanian end customers in the industrial segment with electricity and green electricity certificates from its own wind power generation of almost 1,000 GWh per year as part of a distribution partnership with Axpo Energy Romania. In this context, Axpo acts as a service provider to VERBUND and supports Austria’s leading electricity company when it comes to acquiring new business. Axpo’s know-how as a forerunner when it comes to marketing renewable energies all over Europe is definitely an advantage in the frame of the partnership with VERBUND. In addition, Axpo is specialized in the power purchase agreements business in many markets in Europe, including PPAs for energy-intensive large corporates – such as Dacia.
Domenico Franceschino, Head Origination Western & Eastern Europe at Axpo, comments: “Step by step, the Romanian energy markets have started to follow nowadays’ mega energy trends, such as digitalization, decentralization, decarbonization, and e-mobility. In this context, VERBUND and Axpo teamed up some years ago. We started to cooperate with VERBUND in structuring corporate PPAs for large industrial consumers. Having been able to acquire Dacia as a new customer for VERBUND is a major milestone for our partnership.”
PPA, a megatrend in the field of renewable energies
The local business activities in Romania are part of Axpo’s strategy of constantly expanding its international presence and business specializing in tailor-made energy solutions for its customers in recent years. Meanwhile, the company is present in 28 countries, active in 39 markets in Europe and the United States, and works closely with industrial companies, producers, energy supply companies, SME's as well as market players from the area of renewable energies.
There is a clear trend towards power purchase agreements in many energy markets around the globe, demand is rising constantly and PPAs are becoming the measure of all things in the renewable energy sector. The number of PPAs concluded worldwide recently reached a new peak. The trend indicates that in the future power purchase agreements in general, and so-called “corporate PPAs” with large companies in particular will increase significantly. Especially energy-intensive end consumers are interested in medium- to long-term fixed price contracts for green electricity as more and more companies want to secure a long-term, cost-effective and reliable energy supply from renewable sources. For providers and brokers of power supply and purchase agreements such as Axpo, this has offered an opportunity for additional business because the uncertainty of power prices and volumes has increased for both renewable energy producers and consumers. That’s why long-term power supply and purchase agreements are one of Axpo's greatest growth fields.
About Axpo Romania
Axpo Energy Romania S.A. is based in the heart of Bucharest’s Aviatorilor disctrict, in the north of Romania’s capital. Ever since its foundation back in 2003, Axpo’s Romanian subsidiary has been offering a wide range of expertise in power and gas full supply, energy trading and green certificates. Meanwhile, it has developed into one of the main players in the Romanian energy market. In recent years, Axpo Romania started its cooperation with Austria’s leading electricity company VERBUND in order to provide large corporates in Romania with electricity from renewable energies based on power purchase agreements. The team of Axpo Romania, consisting of 8 employees, will continue to gradually expand its activities in the Romanian energy markets.
