The North Hessian energy specialist SMA Solar Technology AG (SMA) and Städtische Werke AG from Kassel are setting standards when it comes to a climate-friendly energy supply. As part of a long-term electricity supply agreement – or “power purchase agreement” (PPA) – Städtische Werke AG will be supplying the solar specialist SMA with solar energy from a local PV power plant at a set tariff. For SMA, the agreement means price and planning certainty and is an important element of the company’s commitment to a 100 percent renewable energy supply.
“This project represents a milestone in the supply and use of decentrally generated renewable energy,” said Barbara Gregor, CFO at SMA. “Only very few PPAs between companies and electric utility companies have been concluded in Germany, and I am delighted that SMA can once again demonstrate its pioneering spirit. The electricity supply agreement will help cover demand at our headquarters, which have been supplied exclusively with decentrally generated renewable energy from the region since 2020. Our stated aim is to procure 100 percent of our electricity all over the world from renewable sources by 2025. With a global quota of 97.5 percent in 2022, we are already well on track for attaining this goal.”
Städtische Werke AG CEO Dr. Michael Maxelon: “Thanks to the long-term price and planning certainty that we offer, SMA can purchase green energy at a fixed price over the next ten years. This allows us to expand the clean generation of energy locally and strengthen regional value creation in North Hesse. For us, PPAs are a key tool in supporting our customers with appropriate offers on their journey toward decarbonization. This means that we will also develop large-scale PV projects for other major and industrial customers in the future. We are an expert point of contact for complex PPA solutions in the region.”
Background to the power purchase agreement between Städtische Werke AG and SMA
SMA is purchasing all the energy produced by a 5.7 MWp PV system in Niederhohne near Eschwege, enabling it to cover around one third of its entire power requirements at its headquarters in Niestetal and Kassel. Städtische Werke AG in Kassel will take the electricity generated in the PV system and supply it as base load to SMA. Any surplus green energy will be sold by Städtische Werke as lucratively as possible for SMA, with any residual requirements supplemented accordingly. The agreement is part of an existing contract, whereby the price of the solar power is fixed over the long term and so is not dependent on trends in the energy market. This decoupling from the exchange price creates planning and price certainty for SMA. The North Hessian electric utility company Städtische Werke AG is also supplying the rest of the electricity for the SMA site. This electricity also originates from renewable energy sources.
About SMA
As a leading global specialist in photovoltaic and storage system technology, the SMA Group is setting the standards today for the decentralized and renewable energy supply of tomorrow. SMA’s portfolio contains a wide range of efficient PV and battery inverters, comprehensive system solutions for PV and battery-storage systems of all power classes, intelligent energy management systems and charging solutions for electric vehicles and power-to-gas applications. Digital energy services as well as extensive services up to and including operation and maintenance services for PV power plants round off SMA’s range. SMA inverters with a total output of more than 130 gigawatts have been installed in more than 190 countries worldwide. They help avoid the emission of around 63 million tons of CO2e annually. SMA’s multi-award-winning technology is protected by more than 1,700 patents and utility models. Since 2008, the Group’s parent company, SMA Solar Technology AG, has been listed on the Prime Standard of the Frankfurt Stock Exchange (S92) and is listed on the TecDAX and MDAX index.
About Städtische Werke AG
Städtische Werke AG supplies Kassel with electricity, natural gas and district heat. We are responsible for all the water extraction and distribution processes as well as for the street lighting and Kassel’s swimming baths. We are also strategically expanding the city’s fiber-optic network. We are a pioneer when it comes to renewable energy. In collaboration with various partners, we operate four wind farms – with more currently in the planning stage. For heat generation, we are currently in the process of transitioning to climate-friendly fuels such as sludge and reclaimed wood. By 2025, coal will be a thing of the past in Kassel. To support our electric transportation of the future, we are expanding the charging infrastructure across the board.
SMA Solar Technology AG
Sonnenallee 1
D-34266 Niestetal
Germany
Press contact
Dagmar Buth-Parvaresh
Tel. +49 561 9522-421414
Presse@SMA.de
Disclaimer
This press release serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell any securities of SMA Solar Technology AG (the “Company”) or any present or future subsidiary of the Company (together with the Company, the “SMA Group”) nor should it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.
This press release may contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore valid only on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.