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Croatia, Danske Commodities have signed a fixed-price power purchase agreement (PPA)

Energy project developer and operator wpd and energy trader Danske Commodities announced today that they have signed a fixed-price power purchase agreement (PPA) for the Orlice wind farm in Croatia. The deal is the very first post feed -in PPA to be consumed in Croatia between two non-state market participants and marks a new chapter in the energy transition of the Balkans.

Under the agreement, Danske Commodities will be responsible for the trading and balancing of 9.6 MW wind farm Orlice, which is owned by wpd. Orlice is an onshore wind farm in Croatia, located near the City of Sibenik and supplying more than 5,000 households with sustainable energy. It was developed in 2009 by wpd, and the company has now signed the first agreement for Orlice with a commercial offtaker.

Managing Director of wpd Adria Zoran Obradovic said that the PPA marks the beginning of the cooperation with Danske Commodities in Croatia, but is also a significant signal for the development of the energy market in the region. Just as wpd was among the first wind farm developers in Croatia, it is now pioneering a PPA with another non-state market participant immediately after the expiry of the original feed-in tariff agreement concluded with the Croatian state market operator for the Orlice project.

Head of European Power Trading at Danske Commodities Tor Mosegaard said that the company has traded energy in Croatia for more than 10 years and has been part of the country’s transition towards a greener economy. Now, Croatia is increasing its green ambitions, which means even more renewable energy will be needed. With this first commercial PPA signed, the company hopes to expand the development of renewables by strengthening the investment climate for future energy projects – and to set a standard for more deals to be made across the Balkan region.

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