Magna partners with Woodburn Capital Partners to implement a 15-year power purchase agreement for a 2.4 MW photovoltaic array in the Czech Republic. At the same time, Woodburn aims to expand its solar energy initiatives into Croatia and neighbouring regions.
Power Purchase Agreements
Woodburn Capital Partners, a Czech company specialising in renewable energy investments, announced its intention to extend its power purchase agreements (PPA) to companies in Croatia and nearby areas, aiming to establish itself as a prominent 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 their PPAs will be supported by upcoming plants in Stankovci and Brdovec, along with undisclosed future renewable energy projects and partnerships.
“We are swiftly seeking to introduce our PPAs to businesses in Croatia and throughout the region. Our PPAs will be fueled by our forthcoming plants in Stankovci and Brdovec, as well as numerous other renewable energy plants that are in the works and have yet to be disclosed, along with other partnerships,” Medenica remarked.
Power purchase agreements are long-term contracts between energy generators and their clients, who are typically utilities, governments, or businesses. They can last between 5 and 20 years, during which time the power purchaser buys energy at a pre-negotiated price. Such agreements play an important role in the financing of independently owned electricity generators, particularly renewable energy producers such as solar and wind farms.
15-year PPA With Magna
Woodburn Capital Partners, in its inaugural move, has entered a PPA with global automotive corporation Magna, wherein Woodburn will construct and manage a 2.4 MW photovoltaic array at a Magna Bohemia facility in the Czech Republic, backed by a 15-year PPA.
Woodburn’s CFO, Chris Kottnaeur, highlighted the numerous benefits of a long-term PPA for customers, emphasizing that it eliminates capital expenditure investments and simplifies budgeting by ensuring a fixed electricity cost over the contract period, thus mitigating pricing fluctuations and associated write-downs.
“The single most significant benefit in terms of business cash flow is that clients do not have to make any capital expenditures. By signing the PPA, their only cost is operational expenditure,” Kottnaeur stated. “Furthermore, given the fixed period of the contract, long-term budgeting of a key production and operating cost - electricity - becomes very easy, with the stress of pricing fluctuations and associated write-downs.”
Other Solar Projects
According to the company's announcement, Woodburn is currently implementing solar projects across Central and Eastern Europe, including the Adriatic coastal area of Croatia. Additionally, it is actively exploring development opportunities in Bosnia and Herzegovina, which receives up to 35% more sunlight than Central Europe.
Recently, Woodburn unveiled its inaugural investment in Bosnia and Herzegovina, marked by a concession agreement with Canton 10. This investment entails the construction of a 92.5 MW solar power plant in Tomislavgrad, which is planned to feature an onsite battery energy storage system (BESS).
Last summer, Woodburn disclosed its intention to construct and manage two solar power facilities in Croatia, with a combined installed capacity of 13 MW. The larger plant, boasting a capacity of 10 MW, is slated for construction in Brdovec, near Zagreb, while a 3 MW plant will be erected in Stankovci, located in Zadar county.
Woodburn Capital Partners' expansion into Croatia represents a significant stride in their quest to lead renewable energy development in Europe. Through partnerships like their deal with Magna and upcoming projects in Croatia and Bosnia and Herzegovina, Woodburn is driving solar energy growth while providing stable, long-term energy solutions. Their efforts promise a cleaner, more sustainable energy future for the region.