Centrica plc has agreed Power Purchase Agreements (PPAs) with Glennmont Partners for the trading and balancing of 315 MW of capacity on 13 onshore wind farms in Southern Italy and Sicily.
The deal forms a major part of the company’s route-to-market business in Italy, which aims to further grow, through renewable energy generators, corporates and industrials who are looking to purchase electricity on long-term agreements. During 2017 and 2018, Centrica has been involved in a number of landmark European route-to-market projects with major corporates. The provision of route-to-market services is an important part of the strategy of its Energy Marketing & Trading business to provide price certainty and support new, low-carbon power generation.
The market for PPAs is expected to grow rapidly in Europe and globally as renewable energy reaches grid parity and renewable power subsidies phase out.
Cassim Mangerah, Centrica’s Co-MD of Energy Marketing & Trading, said: “We are delighted to sign these PPAs with Glennmont Partners who are among the most experienced and dedicated investors in clean energy infrastructure in Europe.
Francesco Cacciabue, Partner and Chief Financial Officer at Glennmont Partners, said: “We have a strong track record in the development, construction and operation of renewable energy generation projects. Our investment strategy is focused on sustained investment performance and predictable returns. We welcome Centrica as a new PPA provider in Italy and are very pleased to have signed these PPAs with an investment grade company.”