E.ON and RWE complete renewable power supply deal
E.ON and RWE Renewables have announced an agreement for the former to purchase the output of more than 20 British wind farms operated by the latter, to support E.ON’s commitment to provide 100% renewable power for its UK customers. The agreement will last for two-and-a-half years.
With this power purchase agreement (PPA), E.ON will buy around 3 TWh of power annually from wind farms around Great Britain that are operated by RWE, covering 892 MW of onshore and offshore wind generation capacity. E.ON announced last summer that it was providing all of its residential customers across Britain with an electricity supply backed by 100% renewable sources – as standard and at no extra cost.
The wind farms were originally built by E.ON as part of the company’s £3.3bn investment in UK renewables over the last decade. Ownership transferred to RWE last October as part of the asset swap deal in which E.ON Group took over RWE’s stake in Innogy in return for E.ON’s major renewable energy activities, amongst other things.
Michael Lewis, E.ON UK Chief Executive, said: ‘A significant element of our commitment to providing all our residential customers with renewable electricity… was the fact we have invested more than £3.3bn in renewable energy in the UK in recent years. We have now secured the power coming from all those wind farms, as well as similar arrangements we have with more than a dozen independent generators around the country.’
RWE Renewables has an installed capacity of more than 9 GW of renewable generating capacity. Added to this are further assets under construction with a combined capacity of 2.6 GW that will be completed in the near future.
RWE says that growing renewable energy is the clear focus for the company – it claims to be the world’s number two in offshore wind and Europe’s number three in renewable electricity. The company has also set out its goal to become a carbon neutral company within the next 20 years.
E.ON says that its announcement last July, moving more than 3.3mn homes to an electricity supply matched by renewable sources, is the largest of its type to date in the UK and significantly increases the number of households in the country backed by 100% renewable electricity.