ERG Signs 820 GWh Wind Power Purchase Agreement with Glencore in Poland

en.Wedoany.com Reported - On September 25, Italian renewable energy developer ERG signed a five-year power purchase agreement with Glencore Energy Europe, covering ERG's three wind farms in Poland: Radziejów, Słupia, and Szydłowo. The agreement will take effect on January 1, 2027, and will be executed on a baseload supply basis, with an expected supply of approximately 164 GWh of renewable electricity to Glencore per year, totaling approximately 820 GWh over the five-year contract period, equivalent to about 70% of the three wind farms' expected generation.

The core of this contract lies not in new installed capacity, but in ERG locking in long-term sales channels in advance for most of the future generation from its existing wind assets. In recent years, ERG has continued to increase the proportion of long-term power purchase agreements in its electricity sales mix, reducing the sensitivity of wind project revenue to spot electricity price fluctuations by signing multi-year contracts with large industrial enterprises, electricity consumers, and energy traders. The company disclosed that, including this Glencore agreement, ERG has locked in approximately 4 TWh of annual contracted electricity over the past five years, accounting for about 45% of the group's total generation.

ERG is combining long-term power purchase agreements with wind asset operations, aging turbine retrofits, and new energy storage projects. The company's 2026 strategy shows a project pipeline of approximately 5 GW, of which about 230 MW is under construction, and another approximately 700 MW of wind retrofits and energy storage projects have relatively high development maturity, with revenue to be locked in subsequently through government contracts for difference or corporate long-term power purchase agreements. Long-term power contracts have therefore evolved from a mere electricity sales tool into an important component of ERG's support for new project investment and revenue management of existing assets.

For Glencore, this transaction further expands its resource pool in European renewable electricity procurement and energy trading. Glencore Energy Europe will take on most of the output from the three wind farms and enter the electricity market through its energy trading business. ERG will retain approximately 30% of expected generation to continue selling through other channels, creating a combination of long-term contracts and market-based trading that balances revenue stability with market revenue potential in the event of rising electricity prices.

Poland is one of the important wind power markets in Central and Eastern Europe and is part of ERG's existing European renewable energy asset portfolio. This agreement does not involve new wind farm construction, but 70% of the expected generation from the three operational projects being locked in for five years further enhances the cash flow certainty of ERG's Polish wind assets and provides a more stable revenue foundation for subsequent local wind asset optimization and financing of new projects.