A power purchase agreement (PPA) for the supply of green energy to CFL has been agreed with the Enovos Group. This is the first PPA of this size in the Grand Duchy of Luxembourg.
Since the beginning of this year, Luxembourg’s state-owned railway company CFL (Société nationale des chemins de fer luxembourgeois) has been supplying around 15% of its energy needs thanks to this PPA contract, whereby electricity is supplied from the output of a photovoltaic panel park located in the Verbandsgemeinde Südeifel region of Germany.
As majority shareholder, Enovos provides the technical and commercial side of the photovoltaic park which impresses with its size: on an area of 220 hectares, 380,000 photovoltaic modules produce the equivalent of the electricity consumption of around 6,000 households, which corresponds to a carbon dioxide emission saving of 139,240 tonnes per year. The volume of energy used by CFLs is 20 MW, saving 14,234 tonnes of carbon dioxide emissions.
Seven-year contract for green energy to CFL
The contract between CFL and Enovos runs for seven years, until 21 December 2030. “This cooperation allows us to satisfy two pillars of our corporate strategy – innovation and efficiency. On the one hand we are innovating on an environmental and climate level, consuming green energy produced in the region. On the other hand, economic efficiency manifests itself through a favourable electricity price,” says Alain Blau, CFL’s Chief Financial and Administrative Officer.
The electricity purchase price under the PPA is predefined and stable throughout the duration of the contract, which ensures long-term stability. Under standard power purchase agreements, CFL may purchase certificates or guarantees of origin to enable the purchase of renewable energy to be guaranteed, but these do not guarantee local or regional origin.
CFL is also involved in the promotion of photovoltaics in Luxembourg. In the construction of new park&ride car parks and administrative buildings, CFL has installed photovoltaic panels on roofs to provide the necessary energy.