Swiss energy trader DXT Commodities SA will purchase power from an under-construction Italian solar power plant under a fixed price for a five-year period, Reuters reported Sept. 24.
German asset manager and project manager KGAL GmbH & Co. KG will sell all of the output of the 53-MW solar facility to DXT, which will then sell the power to steelmaker Ori Martin Sa under a virtual power purchase agreement. The arrangement, known as a "virtual" power purchase agreement, is gaining traction in Europe as companies look to lock in power prices and improve their green credentials, according to Reuters.
The solar project is expected to generate approximately 95 GWh of electricity once it begins operations in the second half of 2020.
