Swiss energy trader MET Group is on track to reach 2 GW of renewables capacity by 2026 as it expands in Italy and Spain and plans to enter the German solar market, head of renewables Christian Huerlimann said told S&P Global Commodity Insights.
Source: S&P Global
MET’s renewables portfolio of around 400 MW in operation and under construction will be boosted by 550 MW of projects under development and on track to be commissioned, mainly in 2024.
“We are optimistic that we will be able to complete the remaining 1,000 MW by 2026 as planned,” Huerlimann said in a recent interview.
MET’s first project in Spain will start later this year, while the first of five projects acquired in Italy was moving towards ‘ready to build’ status, he said.
“Some solar component prices are set to fall again below pre-COVID crisis levels,” Huerlimann said.
Higher financing cost may weigh on some projects, but MET sees an advantage from its higher own equity on project’s capex.
MET, created in 2007 with focus on the Hungarian gas market, has expanded into a pan-European trader with 109 Bcm of gas and 67 TWh electricity traded in 2022.
Route to market focus for green electricity remains on power purchase agreements despite falling power prices.
Opportunities to expand is now also seen in the German power market, where installed solar capacity is set to triple by 2030, Huerlimann said.
Germany, which plans to tender a record 5.9 GW of utility-scale ground-mounted solar projects this year, lifted the maximum allowed price for 20-year solar support contracts above Eur73/MWh ($79/MWh).
Germany’s renewables market is attracting a host of heavyweight newcomers as companies seek to capitalize on a major new development opportunity in Europe’s largest economy.
The Platts Pexapark index for a 10-year solar PPA was pegged June 9 at Eur62.05/MWh for Germany compared to Eur37.98/ MWh for Spain.
Solar capture prices in Germany averaged Eur61.89/MWh in May, a 24% discount to average baseload, while those in Spain averaged Eur60.10/MWh, a 19% discount, according to S&P Global data.