Norwegian state-owned Statkraft AS signed a long-term agreement to supply 20% of steel producer CMC Poland Sp. z o.o.'s power consumption at a fixed price.
The contract — part of a growing wave in Europe of so-called virtual, or financial, power purchase agreements, or PPAs — will start in 2021 and will co-exist with a physical supply contract, according to a Jan. 16 news release.
Being Europe's largest generator of renewable energy, Statkraft will be able to undertake the contract on the back of its Polish renewable PPA portfolio. The company worked with CMC to develop a customized product suited for the needs of energy-intensive industry.
"As a market integrator, Statkraft enables the development of renewable projects and simultaneously [ensures] long-term price stability to customers such as CMC," Statkraft Business Development Manager Koen Dejonghe said.
CMC Poland is a wholly owned subsidiary of Commercial Metals Co., and is one of the largest electricity consumers in Poland.
Statkraft recently signed an offtake agreement with Spanish power producer Solaria Energía y Medio Ambiente SA for the output of five solar parks in Spain with a combined capacity of 252 MW.