11. October 2024
Axpo has signed a five-year power purchase agreement with Petrol, Slovenia's largest energy company. According to a statement, Axpo will supply electricity to Petrol for the contracted period. No details are given about the quantity.
According to the Baden-based energy service provider, the deal is Axpo's second PPA in the Southeast European country. Unlike the first contract, the new agreement covers the physical supply of electricity to Petrol's end customers. The aim of the agreement is to make the energy distributor’s long-term energy requirements for its core activities more predictable.
As part of the agreement, Petrol has the advantage of purchasing Association of Issuing Bodies Guarantees of Origin for solar, wind or hydroelectric power. As a result, Petrol can guarantee its customers energy from sustainable resources. Petrol also has the flexibility to purchase additional quantities of electricity, while by securing a fixed average price, it benefits from price stability too.
“This agreement provides the company with the stability and assurance that is essential in business planning, protecting against volatile markets and energy prices through strategic hedging,” Philip Schmid-Lossberg, Senior Originator for South-Eastern Europe at Axpo, is quoted as saying.
Marko Bregar, Executive Director for Electricity Supply and Trading at Petrol, reports high customer demand for long-term contracts such as PPAs because they provide “stable and predictable energy costs”. In addition, he is quoted as saying, customers can significantly reduce their carbon footprint by purchasing Guarantees of Origin (GoOs). ce/heg
