BKW signs electricity supply agreement with Deutsche Bahn

BKW supplies German national railway operator Deutsche Bahn (DB) with electricity from an offshore wind farm on a long-term basis. To regulate this supply, the two entered into a long-term power purchase agreement (PPA).


Under this contract, BKW supplies Deutsche Bahn with 20 MW of baseload offshore wind energy each year. By offering a reliable, straightforward supply of green electricity, BKW is supporting the long-established company in its sustainable mobility endeavours.

BKW has been active in the PPA business for years – and has recently also begun operating in the offshore wind market. «It’s great to see our portfolio developing and that we’re playing an increasingly important role in the PPA market,» says Amanda Niklaus, Head of Renewables PPA Origination at BKW.

«PPAs are an important way of supporting the construction of new solar and wind power plants throughout Europe.»

Why does BKW use this kind of PPA?

For one, we help corporate customers reduce their CO2 emissions by supplying them with green electricity – it’s reliable and, most importantly, easy to plan for. If they were to purchase the electricity from the energy market instead, the companies would never know precisely what price they would ultimately have to pay. With our experience and expertise, we’re able to offer fixed prices for wind and solar power. The generation of this energy is weather dependent, which leads to price fluctuations in the open market.

How are we promoting the expansion of renewables with these PPAs?

In markets that are no longer subsidised, PPAs are an important way of supporting the construction of new solar and wind power plants throughout Europe. Projects like these must generate stable income in order to qualify for funding. Purchase agreements provide this yield stability before the production facility is built. In real terms, the PPA partner, in this case BKW, commits to purchasing the energy generated by a power plant at a specific price that is defined when the agreement is signed.

Amanda, are we not missing out on opportunities to make more on the commercial market than the agreed fixed price?

Thanks to the strong foundations of BKW, our trading activities and our own power plants, we’re in a much better position to take on and manage risks from the production of renewable electricity than a project developer or fund, whose strengths lie elsewhere. It’s a win-win situation: we provide a service for managing commercial risks in the field of renewable energy by offering security in the form of a fixed price for the electricity generated by the installation. At the same time, BKW can deliver this green energy from the producers to customers in Switzerland and abroad, which supports the energy transition throughout the value chain: generating, distributing and making efficient use of electricity.

Power plants across Europe

BKW builds and operates power plants, including renewable energy plants, with an installed capacity of almost 1 GW in the six countries: Switzerland, Germany, France, Italy, Norway and Sweden. BKW is active in over 100 projects across Europe.

As well as operating its own plants, BKW also trades electricity and guarantees of origin in the core European markets.

With long-standing experience in the renewable energy market, BKW offers services in the areas of grids, energy purchasing, consulting, customer solutions and PPAs.

Long-term electricity marketing (PPA)

Long-term electricity marketing (PPA)

Discover the advantages of working with BKW when you enter into a power purchase agreement (PPA) with us.



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