Germany-based food retailer REWE has signed a 10-year power purchase agreement with Ørsted to procure 100 MW of electricity from Ørsted’s Borkum Riffgrund 3 offshore wind farm which is set to become operational in 2025.
The deal marks REWE Group’s largest renewable energy offtake agreement to date and makes REWE Group the first German food retailer to buy electricity from an offshore wind farm in the North Sea.
The 100 MW of green power from Borkum Riffgrund 3 equals the power consumption of 1,500 REWE stores. REWE Group has a goal of becoming climate neutral by 2040.
Borkum Riffgrund 3 is expected to become operational in 2025, subject to Ørsted's final investment decision, which is expected by the end of 2021.
The offshore wind farm will have a total export capacity of 900 MW and will be built in the German North Sea close to Ørsted's existing offshore wind farms Borkum Riffgrund 1 and Borkum Riffgrund 2.
In the German offshore wind auctions, Ørsted was awarded the right to build the project with a bid of EUR 0 per MWh.
According to Ørsted, this was made possible by a number of cost drivers, including the installation of next-generation wind turbine technology, very good site conditions and high wind speeds, and anticipated revenue-stabilizing power purchase agreements with industrial customers such as REWE Group.
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