Budimex and Respect Energy have concluded a long-term agreement covering the balancing and settlement of electricity produced in Budimex’s Kamelia photovoltaic farm.
The contract based on the Corporate Power Purchase Agreement (cPPA) formula will provide one of the largest entities in the construction sector with stable access to green energy from its own 21 MW installation, which will ultimately power over 100 energy consumption points in the Budimex Group.
Energy from the Budimex Group’s own photovoltaic farm
The Kamelia photovoltaic farm is 100% owned by Budimex SA and has been designed to supply the Group’s internal energy needs. Electricity in this model flows from the Budimex Group’s own RES source to the consumption points, increasing the share of energy from its own assets in total consumption.
This solution allows for gradual independence from short-term fluctuations in the wholesale energy market and for building a more stable and predictable cost profile in the power supply area.
Cost-Efficiency Oriented cPPA
The Corporate Power Purchase Agreement (cPPA) concluded with Respect Energy integrates energy production from the Kamelia farm with the energy consumption profile of the Budimex Group. The new contract is not only another cPPA agreement on the Polish RES market, but an advanced cooperation structure, designed to maximize the benefits for the Recipient and ensure effective balancing of the generating unit.
The contract has been structured in such a way that:
- enable effective settlement of energy supplied from Kamelia to consumers in the Budimex Group,
- increase the predictability and stability of energy costs,
- allow market opportunities to be seized, including the negative price mechanism;
- ensure transparent and clearly defined settlement rules,
- flexibly shape the purchase of energy outside the volume covered by the contract.
The aim of the agreement is primarily to optimize the use of its own RES source and to organize settlements on the energy market with the support of a specialized partner.
Respect Energy’s role: balancing and billing partner
In this structure, Respect Energy plays the role of a specialized partner on the energy market. The company is responsible for balancing the Kamelia generating unit in the national power system, representing it on the market and market settlements of the energy flow between the farm and the consumption points in the Budimex Group.
This means that Respect Energy does not act as a classic energy supplier for Budimex, but as an entity supporting the effective use of energy generated in the Group’s assets and ensuring compliance of the process with market regulations and standards, including in the area of price risk reporting and management.
“A key factor in the design of this agreement was to combine business benefits with energy predictability, while maintaining compliance with regulations and best risk management practices. Thanks to this, the Recipient can take full advantage of market opportunities, and the Producer gains a stable and effective balancing model” – emphasizes Dariusz Urbańczyk, Sales and Product Development Leader at Respect Energy.
Such a division of roles allows for the use of Respect Energy’s competences, while retaining full ownership and control over Budimex’s strategic generation asset.
Camellia as an element of the energy portfolio management strategy
“The Kamelia photovoltaic farm significantly changes the structure of our energy shopping basket. The introduction of our own generation source required a properly designed balancing and settlement model, which we implement in cooperation with Respect Energy. The cPPA constructed in this way allows us to optimally manage energy from Kamelia, while reducing price risk and maintaining full control over the asset on Budimex’s side,” says Maciej Parcheta, Purchasing Project Manager at Budimex SA.
Budimex and Respect Energy combine their experience in the construction sector and the energy market, developing a model that integrates business, cost and environmental goals in the area of supplying a large consumer with energy from renewable sources.
