Shell Energy Europe has inked a significant 15-year power purchase agreement (PPA) with HANSAINVEST Real Assets, securing 600 megawatts (MW) of capacity at Germany’s largest solar project, the Witznitz Energy Park. This move advances Shell’s commitment to expand its low-carbon power portfolio and foster the transition to renewable energy sources.
The Witznitz Energy Park, currently under construction by MOVE ON Energy, is situated on the grounds of a former opencast coal mine near Leipzig in eastern Germany. It is set to commence electricity generation by the end of 2023, making it a crucial player in Germany’s renewable energy landscape.
As part of the PPA, Microsoft has already secured 323 MW of this renewable energy capacity from Shell. This collaboration aligns with Microsoft’s goal of achieving a 100 percent supply of renewable energy by 2025, supported by agreements with clean energy providers.
Tom Summers, European Vice President at Shell Energy Trading, stated, “We are continuing to strengthen our low-carbon power portfolio. Solar power purchase agreements enable us to combine our strengths in power trading and optimization with our existing customer relationships to deliver more value with fewer emissions.”
Shell Energy Europe has not only secured this renewable energy capacity but also entered into an agreement to sell the power generated by 323 MW of the solar capacity to Microsoft Corporation. This strategic collaboration further underscores the commitment of both companies to sustainability and clean energy solutions.
Shell’s pursuit of renewable energy initiatives is part of its broader vision to transform into a net-zero emissions energy business by 2050. This endeavor is driven by a strategic alliance formed in 2020 between Shell and Microsoft, aimed at supporting progress towards a world with net-zero emissions.
HANSAINVEST Real Assets, a subsidiary of German insurance company SIGNAL IDUNA, manages over €7 billion in real estate and infrastructure assets across Europe and holds control over the 600 MW Witznitz Energy Park, which will be operated by MOVE ON Energy.
The Shell-HANSAINVEST Real Assets partnership and the development of the Witznitz Energy Park represent a significant step towards a greener, more sustainable energy future in Germany and beyond.