Claus Sørensen A/S has been customer at Energi Danmark for a number of years and for long, focus has been on sustainable electricity consumption. Claus Sørensen A/S, which is part of the Claus Sørensen Group, which includes a number of industrial companies in Denmark and internationally, already makes its flexibility available to the electricity market. Through consumption flexibility, Claus Sørensen A/S reduces its electricity consumption during peak periods and consumes more when there is a surplus. The desire for sustainable electricity consumption is therefore nothing new.
With this agreement, Claus Sørensen A/S has fulfilled its desire to buy electricity from completely newly constructed plants, thereby bringing new sustainable energy to the market. The PPA combines sustainability with a competitive price and the agreement runs over a 10-year period.
Unlike many PPAs, in which the customer has to enter into a PPA agreement with the producer and have a separate electricity delivery agreement, Claus Sørensen A/S has Energi Danmark as its direct counterparty in this agreement. This means that Energi Danmark manages the entire set-up and takes care of contact with the producer, the electricity supply itself, as well as risk management.
With the customer’s mandate in hand, Energi Danmark has entered into an agreement with European Energy on the construction of two photovoltaic systems, which are expected to be put into operation by the end of 2021 at the latest.
The fact that Energi Danmark is the direct counterparty in the agreement is groundbreaking because it opens up the possibility for all customers – including those with lower electricity consumption – to prioritise sustainability at no additional cost. As a direct counterparty, Energi Danmark can pool several companies’ consumption together, so that the total consumption corresponds to the production of a solar cell or wind farm.
European Energy, which is responsible for the actual construction of the solar farms for Claus Sørensen A/S, is also pleased with the agreement, which opens the door for more companies to participate in the green shift.
"It is very positive that the cooperation between European Energy and Energi Danmark is able to provide all companies with the opportunity to enter into PPAs, something that has otherwise been reserved for customers with greater electricity consumption," says Gregor McDonald, Head of energy trading and PPAs at European Energy.
Claus Sørensen A/S buys electricity from two completely new photovoltaic systems at Rødkilde in South Funen and at Ålbæk in North Jutland. The systems are located within the same price area as Claus Sørensen A/S' consumption. This is not a coincidence, because, with consumption in the same area as the plants, the customer avoids any price risk associated with transfers between two areas. With Energi Danmark as the balance manager, Claus Sørensen A/S has also ensured billing at a fixed, agreed price corresponding to actual consumption.
About the parties to the agreement:
Claus Sørensen A/S: Claus Sørensen A/S is a nationwide chain of cold stores that provides food producers, slaughterhouses, commercial companies, fishing companies, etc. with storage and logistics services within freezing and cooling. Claus Sørensen A/S is part of the Claus Sørensen Group, which consists of the companies Viking Life Saving Equipment, Vestfrost Solutions and Blika A/S. The company is based in Esbjerg, Denmark, with branches at strategically important locations in Denmark.
Energi Danmark: The Energi Danmark Group is one of the Nordic region’s leading energy trading groups. Activities range from physical and financial energy trading to trade in oil, gas and wind power, as well as portfolio management. The Group is responsible for both the consumption and production of electricity and has subsidiaries in Denmark, Sweden, Finland, Norway and Germany.
European Energy:European Energy develops and builds solar and wind farms. The company has a presence and projects in 16 different countries and has installed and invested in more than 1.5 GW of wind and solar capacity to date. In recent years, the company has entered into a large number of PPAs throughout Europe.