FIRST GREEN ELECTRICITY PURCHASE AGREEMENT IN HUNGARY (March 9., 2023.)

FIRST GREEN ELECTRICITY PURCHASE AGREEMENT IN HUNGARY (March 9., 2023.)

The execution of the first green power purchase agreement on the Hungarian market, under which Nap Plc. will provide a part of the electricity needs of a production company in the long term, has started, the CEO of Nap Plc., Gábor Földvári, said at a press conference on Thursday. The riport was published in Diplomacy & Trade.

The so-called Power Purchase Agreement (PPA) signed a month ago with Linamar Plc., a machinery company in Orosháza employing around 3,000 people, is the first such agreement in Hungary, but more and more companies are likely to opt for this solution in the near future, Gábor Földvári stressed. He said that the contract is for ten years and was the result of long negotiations, as the interests of four parties – Linamar Plc., Nap Plc, the financing company Magyar Bankholding Plc. and the power trader Audax Hungary – had to be reconciled. As car manufacturers want to achieve a zero carbon footprint by 2030, it is important for their suppliers to use green energy, and predictability is also important, and Linamar "now knows how much it will get the energy for in the next ten years," he added. The energy provided under the agreement will only cover 15-20% of Linamar's energy needs, as "it is not possible to run a plant on renewable energy alone" since energy storage is not possible due to the high cost of batteries.