CMS has advised Acciona on a five-year virtual power purchase agreement with automotive manufacturer Brembo in Poland.
Acciona owns and operates 101MW of wind assets in Poland. According to CMS, "the company supplies 100% renewable energy to more than 500 companies and institutions worldwide, contributing to corporate strategies that focus on decarbonization and fight against climate change," and the firm notes that "with more than 10.7GW of renewable generation assets, Acciona's is the world's greenest electricity utility, according to the New Energy Top 100 Green Utilities and analysis criteria for the Dow Jones Sustainability Index." Acciona is also present in the Polish construction and real estate markets through its affiliate Mostostal Warszawa and Acciona Real Estate.
According to CMS, a virtual power purchase agreement, or "VPPA," is an agreement concerning the purchase of electricity generated from renewable sources directly from the generator.
Under its agreement with Brembo, Acciona will inject 100,000 MWh of green power a year into the grid and provide the associated Guarantees of Origin to Brembo Poland as a virtual PPA does not require the physical delivery of electricity to the client. The electricity will come from Acciona's 63MW Krobia I windfarm in Wielkopolskie. The contract went live on February 1st, 2021."
PPAs are getting more and more popular in Poland as offering substantial benefits for all parties involved," commented CMS Partner Lukasz Szatkowski, who led the firm's team on the deal. For [the] energy generator it strengthens the trading price structure and reduces the company’s exposure to market price volatility, while [the] energy consumer may optimize costs, access clean power, and progress towards emission reduction goals."
In addition to Szatkowski, CMS's team included Senior Associate Piotr Prawda and Associate Kacper Stanosz. CMS UK Senior Associate Dalia Majumder-Russell advised on English law.
CMS did not reply to our inquiry about counsel for Brembo.
