ENCAVIS : signs power contract with Amazon

• 149 MW capacity to be supplied to Amazon (PPA)
• 50 MW additional capacity will be sold at market prices
• Spain to become Encavis' largest solar energy market with 500 MW capacity

Hamburg, December 5, 2019 - ENCAVIS AG (Prime Standard, ISIN: DE0006095003) concludes a long-term power purchase agreement (PPA) with Amazon. In Cabrera in southern Spain, in the immediate vicinity of Seville, the company's second largest solar park will be built with a generation capacity of around 200 MW. To increase the yield, the solar modules will be mounted on single-axis trackers. The plant is scheduled to be connected to the grid at the end of the third quarter of 2020.

The total amount of electricity agreed over the 10-year contract period amounts to around 3,000 gigawatt hours (GWh) and shall be supplied to Amazon, including the corresponding green certificates of origin. Encavis realizes in due course its second solar project in Spain and contracted long term more than 7,500 GWh green energy without any governmental subsidy. Additional around 1,000 GWh of electricity will be available for the wholesale market at spot market prices at first

The investment volume, including project-related external financing, amounts to around 158 million euros. Following the strategy of the solar park in Talayuela, Spain, the project developer Solarcentury participates with up tp 20 percent in the investments. Solarcentury fulfilled already 50 percent of the agreed volume in capacity of 1.1 GW with the projects developed exclusively for Encavis so far. Again Pexapark acted as PPA advisor for Encavis AG.

'Within a few weeks after concluding a long-term power purchase agreement (PPA) with an energy provider, we have reached another milestone and concluded our first contract in the high-growth green power marketing segment with technology groups. With this move, we are quickly entering a whole new dimension of our PPA business. Both projects with a capacity of 500 MW and the size of a modern gas-fired power plant represent Encavis' future in the subsidy-free marketing of green electricity,' said Dr. Dierk Paskert, CEO of Encavis AG, underlining the Group's consistent growth strategy.

'The attractive conditions in Spain ensure competitive and predictable prices for the purchasers of green electricity and at the same time are making a significant contribution to improving climate conditions. Both projects will reduce CO2 emissions by 3.4 million tons over the contract period,' said Paskert, highlighting Encavis' unique selling proposition.

PPA - three characters are transforming the industry around the world:
Power Purchase Agreements (PPAs) are contracts between an electricity producer and a private buyer regulating the long-term purchase of electricity from renewable sources at a fixed price. These agreements, which are familiar from conventional power plant operation, are not yet so widespread in the German renewable energy sector. Hence, they are attracting considerable interest from utilities, generators and industrial customers and are set to fundamentally transform the development of the entire renewable energy sector. 'The market will change from a subsidy market to a customer market and will be driven by the high demand for green electricity,' Paskert explains the long-term effects on the industry.