As a global supplier of components for the wind energy industry, Baettr faces the dual challenge of navigating the energy markets of their international locations and ensuring the use of renewable energy in their own production lines. Their Power Purchase Agreement (PPA) with Reel strengthens their ability to do both.
The challenge
For over a decade, Baettr has been a major player in the global wind energy industry, designing and manufacturing turbine components. They are committed to accelerating the transition to renewable energy, including in their own production lines across Europe and Asia.
Electricity was a key challenge in Baettr’s push for more sustainable production lines. When searching for solutions, Baettr knew that traditional ‘green’ electricity certificates would not contribute to the creation of new renewable energy – lacking the essential quality of ‘additionality.’ Also, because casting turbine components is extremely electricity intensive, Baettr was highly vulnerable to fluctuations in electricity prices. Baettr thus faced the challenge of ensuring that their electricity consumption made an actual difference for the climate while reducing their exposure to volatile electricity prices.
The solution
To meet this challenge head-on, Baettr entered a PPA with Reel. With this PPA, Baettr is purchasing a fixed amount of electricity, at a fixed price, for a fixed period of time, directly from a new solar park (note, Baettr will continue to consume the grid’s normal electricity mix). The PPA’s competitive pricing structure will give Baettr the desired long-term stability and risk reduction while also ensuring that they contribute more renewable energy on the grid – so-called ‘additionality’.
“The partnership with Reel on a PPA means that we can actually reduce CO2 emissions and positively impact the climate. Besides driving the uptake of renewable energy, we also reduce our exposure to the unpredictability of international energy markets.”
— Peter Pallishøj, Baettr CEO
Baettr’s PPA will cover 33% of their main factory’s electricity consumption in the town of Lem in Jutland. In the future, Baettr will work with Reel to enter PPAs that cover their remaining electricity consumption in Denmark.
'By providing us with a reliable way to ensure that our electricity consumption is aligned with our sustainability goals, Reel has created a unique solution that opens up the opportunity for business of all sizes to ambitiously contribute to the transition to renewable energy,' says CEO, Peter Pallishøj.
A partnership for the future
Baettr’s partnership with Reel marks the beginning of a new strategic direction, where Baettr will gradually implement PPAs across all their locations. By matching their total energy demand with PPAs, Baettr will effectively ensure that they add as much new renewable energy to the grid as they consume – while safeguarding against future price volatily.
“It is important to have a strategy to deal with the volatility in electricity prices. By entering a PPA with Reel we are getting an effective and long-term solution to manage this risk, while addressing our sustainability goals. We literally could not get this win-win scenario anywhere else than with Reel.”
— Peter Pallishøj, Baettr CEO
By working with Reel, Baettr has achieved:
- A reduction of CO2 Emissions*: Baettr’s PPA is resulting in the construction of a new solar park in Denmark. *Once construction is complete, the solar park will lower Baettr’s market-based emissions from electricity and contribute to Denmark’s renewable energy transition.
- Risk reduction as a competitive advantage: Baettr is minimising risk by stabilising part of their electricity costs through their PPA. This protects Baettr against spikes in electricity prices costs, providing a competitive advantage.
- Increased transparency: Reel’s platform tracks Baettr’s hourly electricity consumption alongside Denmark’s hourly energy mix. The granularity of Reel’s data enables Baettr to accurately measure their actual emissions with unprecedented transparency.
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