Nordex wins zero-subsidy order backed by Mercedes PPA for large German wind farm
Deal with automotive giant is 'unique' as for first time wind project on land isn't paid for by feed-in tariff allocated in tender but through deal with industrial player
Nordex has won a subsidy-free order for a large German onshore wind farm backed by a 25-year PPA with automotive giant Mercedes-Benz.
Developer UKA will build the 140MW project near an automobile testing site near Papenburg in the state of Lower Saxony state.
The wind farm will feature 20 of the OEM’s N163-6.X turbines with a 7MW operating mode to be erected on hybrid towers with a hub height of 164 meters – with Max Bögl Wind supplying the concrete foundations and concrete tower parts.
“It is a PPA project. And this is, of course, a very specific example in Germany – with a price level by an industrial player – of which we hope there will be more and more.”
With the Papenburg project, Nordex and UKA venture into the construction of onshore wind farms paid for entirely by a power purchase agreement (PPA). Germany’s wind expansion has so far been driven by feed-in tariffs (FIT), the level of which is determined by tenders. PPAs have been more common in offshore wind, but usually only for parts of the wind farm's power output.
“This means… if you can show the market that this is possible, and the investor can show the market that this is possible, then we hope that similar examples with other industries will follow.”
The size of 140MW is large for Germany, where – despite the country being Europe’s biggest onshore wind market – wind farms on average feature only three to six turbines due to high population density.
First turbines of the project are slated to start operation on a trial basis in 2027. Once fully commissioned, the wind farm will meet some 20% of the annual electricity needs of Mercedes-Benz Group in Germany.
“The wind farm in Papenburg is an important building block of our sustainable business strategy - from an ecological and also an economic perspective,” Mercedes-Benz Group board member Jörg Burzer said.
UKA managing partner Gernot Gauglitz added: “As owners of the future wind farm, we will be supplying Mercedes-Benz AG with electricity for the next 25 years.
“Despite some challenges – for example at the construction site – the project team is pressing ahead with the construction of the wind farm in record time. The wind farm on the Mercedes-Benz testing area is a flagship project in our portfolio of onshore wind farms currently under construction in Germany, representing more than 1.5GW in total.”
First order in Ecuador
During the Husum Wind show, Nordex also announced its first order in Ecuador, for a 112MW wind farm in the southern part of the Andean country.
The OEM will supply 19 of its N149/5.X machines to an unnamed customer.
The wind farm will particularly support Ecuador's energy supply during the Amazon dry season and help reduce the risk of blackouts.
Ecuador so far has only 69MW of installed wind capacity across three projects.
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