Daimler have signed a renewable Purchase Power Agreement (PPA) with Statkraft that will enable them to power their Mercedes factories with 100% renewable electricity. The PPA bring together wind and solar electricity, with hydro capacity in Norway to be used as a back-up power source.

This deal shows that even energy-intensive industries such as manufacturing can transition to clean energy.

By combining wind, solar and hydro, Daimler can benefit from reliable renewable power 24/7. The wind power will come from 200 wind turbines spread across 24 different wind farms in Germany. These are existing wind farms that are no longer getting public financial support. So, the deal keeps them operating and helps prevent any early and unnecessary decommissioning of the turbines.

WindEurope CEO Giles Dickson said, “This is a fantastic deal. Daimler gets clean energy. Europe’s biggest industry take a big step forward in cutting its emissions. 24 wind farms get a new customer and can keep running free of public support. The wind is combined with solar and hydro to give 24/7 stable power. And Europe gets a perfect model for how cheap and reliable renewables can decarbonise the economy.”

PPA deals like this are a key part of the transition to clean energy and it is important that the EU and national governments support them. Unfortunately, there are still barriers to PPAs in many countries. For example, energy-intensive industries in Germany are unnecessarily penalised today if they sign a corporate renewable PPA and some governments withhold the necessary guarantees of origin that underpin the PPAs by providing the traceability of renewable energy.