Deutsche Bahn, the German railway company, has recently signed a Power Purchase Agreement (PPA) for renewable energy in a bid to reduce its carbon footprint and contribute towards a more sustainable future. The PPA was signed with renewable energy company BayWa r.e. for the sourcing of 27 MW of wind power from two wind farms in Lower Saxony and Rhineland-Palatinate.
The PPA is a legally binding agreement between the power buyer (Deutsche Bahn) and the power seller (BayWa r.e.) for the purchase and supply of renewable energy over a fixed period of time. PPAs are becoming increasingly popular with large corporations as they enable them to reduce their carbon footprint and meet sustainability targets, while also securing a long-term supply of energy at a fixed price.
The PPA signed by Deutsche Bahn is a significant step towards the company’s goal of operating entirely on renewable energy by 2030. The wind power sourced from the two wind farms will supply electricity to Deutsche Bahn’s rail network, reducing its reliance on fossil fuels and contributing to the reduction of carbon emissions.
The PPA also has financial benefits for both companies. BayWa r.e. will be able to secure a long-term customer for their renewable energy, while Deutsche Bahn will benefit from the fixed price of the electricity, reducing its exposure to volatile energy markets and enabling cost savings over the long term.
The renewable energy sector in Germany is rapidly growing, with the country aiming to generate 65% of its electricity from renewable sources by 2030. PPAs are playing a key role in this transition, as they provide a means of financing for renewable energy projects, enabling them to be developed and built at scale.
The Deutsche Bahn PPA demonstrates the company’s commitment to sustainability and reducing its impact on the environment. By sourcing renewable energy through a PPA, Deutsche Bahn is taking a proactive step towards achieving its renewable energy targets while also contributing to the wider goal of a more sustainable future.