Magna is partnering with Woodburn Capital Partners on a 15-year power purchase agreement for a 2.4 MW photovoltaic array in the Czech Republic. The deal comes as Woodburn aims to expand its solar energy initiatives into Croatia and neighboring regions.
Power Purchase Agreements
Woodburn Capital Partners—a Czech firm specializing in renewable energy investments—has announced plans to expand its power purchase agreements (PPAs) to companies in Croatia and nearby regions. This expansion aims to position the company as a leading developer and operator of renewable energy projects across central, eastern, and southern Europe.
Mirko Medenica, head of development at Woodburn, stated in a press release that its PPAs will be supported by upcoming plants in Stankovci and Brdovec, along with other undisclosed renewable energy projects and partnerships.
“We are quickly working to introduce our PPAs to businesses in Croatia and the wider region. These agreements will be supported by our new plants in Stankovci and Brdovec, along with several other undisclosed renewable energy projects and partnerships currently in development,” Medenica remarked.
Power purchase agreements are long-term contracts between an energy generator and a client, typically a utility, government, or business. These agreements can last from 5 to 20 years, during which the purchaser buys energy at a pre-negotiated price. PPAs play a vital role in financing independently owned electricity generators, especially renewable energy producers like solar and wind farms.
15-year PPA With Magna
In its first major PPA, Woodburn Capital Partners has partnered with the global automotive corporation Magna. Under the 15-year agreement, Woodburn will construct and manage a 2.4 MW photovoltaic array at a Magna Bohemia facility in the Czech Republic.
Woodburn’s CFO, Chris Kottnaeur, highlighted the benefits of a long-term PPA for customers, noting that it eliminates the need for capital expenditure investments. A PPA also simplifies budgeting by locking in a fixed electricity cost over the contract period, which mitigates price fluctuations and the risk of associated write-downs.
“The most significant benefit for business cash flow is that clients avoid making any capital expenditures. By signing a PPA, their only cost is operational,” Kottnaeur stated. “Furthermore, the fixed-term contract makes it much easier to budget a key operating cost—electricity—while eliminating the stress of price fluctuations and potential write-downs.”
Other Solar Projects
According to a company announcement, Woodburn is currently developing solar projects across Central and Eastern Europe, including Croatia’s Adriatic coast. The company is also actively exploring development opportunities in Bosnia and Herzegovina, which receives up to 35% more sunlight than Central Europe.
Woodburn recently announced its first investment in Bosnia and Herzegovina, signing a concession agreement with Canton 10. The project involves building a 92.5 MW solar power plant in Tomislavgrad that will also include an onsite battery energy storage system (BESS).
Last summer, Woodburn announced plans to build and manage two solar power facilities in Croatia with a combined installed capacity of 13 MW. The larger 10 MW plant is slated for construction in Brdovec, near Zagreb, while a 3 MW plant will be built in Stankovci, in Zadar county.
Woodburn Capital Partners’ expansion into Croatia marks a significant step in its goal to become a leader in European renewable energy development. Through strategic partnerships like the Magna deal and upcoming projects in Croatia and Bosnia and Herzegovina, Woodburn is driving solar energy growth and providing stable, long-term energy solutions.
These efforts are paving the way for a cleaner, more sustainable energy future for the region.
