Daimler inks deal for 100% green power in Germany, supplied in real time

Multi-national auto giant Daimler has revealed plans to source 100 per cent of its electricity demand in its home country of Germany from “firmed” and “flexible” renewables, in deal put together by Norwegian power company Statkraft.

The deal is being described as “unique” for its promise to supply green power to Daimler sites in real time – as it is needed – largely from German solar, wind and hydroelectric power plants.

The contract includes wind farms that are already in operation, as well as some that will be built new and used exclusively to power Daimler. Any gaps in demand will be filled by Statkraft’s own hydropower plants.

Statkraft notes that the new deal – which builds on a December 2018 energy supply deal between the companies – would also support existing wind power projects in Germany which, from January 01, 2021, will lose their government subsidy for electricity generation.

In a statement issued late last month, Statkraft said the contract – which will be managed by an offshoot of Luxembourg energy company Encevo Group, called Enovos – marked the first instance of a long-term 100% green power supply deal on an industrial scale in Germany.

“The combination with Statkraft’s flexible hydropower ensures that the green electricity is generated at the same time as it is consumed. A power supply of this combination and scale is unique in Germany to date,” the statement said.

“To generate green electricity exactly when it is needed is a major challenge that can only be met with considerable flexibility in generation,” said Statkraft CEO Christian Rynning-Tønnesen.

“Our flexible hydropower plants complement the fluctuating power generation from wind and solar so that a 100% renewable power supply is guaranteed at all times.

“We are proud to offer this innovative concept to an outstanding industrial company – a solution that will reduce CO2 emissions and enable Daimler to achieve their climate goals. This combination of size and sources are unique in Germany to date,” he adds.

Enovos, which holds the electricity supply contract with Daimler, will manage the entire process, including physical delivery, balancing group management, billing, grid usage, consumption forecasts and hedging.

The head of Enovos in Germany, Anke Langner, said the company was convinced the contract with Daimler would have “a signal effect” on Germany’s entire green power supply market.

For Daimler – which encompasses Mercedes-Benz and several truck brands including Daimler Trucks, Mercedes-Benz Vans and Daimler Buses – the green power supply deal fits nicely with the company’s recently announced shift to all-electric vehicle production, and away from fossil fuel powered internal combustion engines it is credited with inventing.

The German multinational auto group declared in September 2019 that it had no current plans to develop fossil fuel engines, and would shifts its focus to electric drivetrains and battery development.