Woodburn Capital Partners Announces Photovoltaic Plants in Stankovci and Brdovec

A month after participating in the RE-Source Croatia conference in Zagreb, the exterior department of the global automotive company Magna International signed its first Power Purchase Agreement (PPA) with Woodburn Capital Partners. According to a statement from Woodburn, under the signed agreement, Woodburn will build and operate a special photovoltaic power plant with a capacity of 2.4 MW at the location of Magna’s factory in the Czech Republic, in accordance with a 15-year PPA arrangement.

In Croatia, the signed PPA agreements will be structured based on the production of Woodburn’s future photovoltaic plants in Stankovci and Brdovec. Mirko Medenica, the head of development at Woodburn, says they are actively looking for ‘ways to introduce PPA agreements into companies in Croatia and the region’.

– The signed PPA agreements will be structured based on the production of our future photovoltaic plants in Stankovci and Brdovec, according to the model of physical or dislocated energy sources (on-site or off-site), taking into account a number of other renewable energy projects currently under development, and whose announcements will follow. This strategy also includes entering into additional partnership arrangements, which will ensure a comprehensive approach to the development of renewable energy capacities – adds Medenica.

There are multiple advantages of long-term PPA agreements for buyers, explains Chris Kottnauer, the Chief Financial Officer of Woodburn.

– The biggest financial advantage is that buyers have no capital investments. By signing a PPA agreement, the only expense is the monthly cost of the produced electricity. Given the agreed fixed period and fixed amount, long-term budget planning for electricity becomes simple. This arrangement eliminates the stress caused by price variability and risks associated with write-offs, providing greater financial stability. Let’s not forget the positive ESG impact of producing and consuming renewable energy – says Kottnauer.

– Unlike many other stakeholders in the field of renewable energy, we have adopted a vertical integration approach, starting from finding locations, managing all permits and regulatory requirements, finding future PPA buyers, to the physical construction and operational management of power plants. Our team consists of experienced professionals with extensive experience in managing projects from inception to final preparations and project implementation, including development, financing, construction, and operational management – emphasizes Medenica.

Investments in Southeast Europe

In addition to signing the contract with Magna, Woodburn has already completed five solar power and biomass power projects, investing over €80 million. Their goal is to become a leading development-operational entity in the field of renewable energy in Central and Southeast Europe. They recently announced their first investment in Bosnia and Herzegovina, with a signed concession agreement with the Government of Canton 10 (Herzegovina-Bosnia). In Tomislavgrad, a solar power plant with a capacity of 92.5 MW will be built, which will be equipped with a battery energy storage system (BESS) on-site. The concession agreement was signed by Minister Miroslav Jaglica in the presence of Aleš Ottmar from the Embassy of the Czech Republic in Sarajevo.

Why sign a PPA agreement?

Corporate use of renewable energy is rapidly becoming a trend in Europe. Driven by strict cost reduction requirements, combined with growing calls for sustainability among investors and consumers, renewable energy has become an attractive alternative. For factories, hotels, hospitals, shopping centers, or office buildings in Southeast Europe, PPA agreements allow companies to pay a fixed price for electricity over the years, reducing the volatility of electricity costs and achieving long-term savings on electricity bills.

Furthermore, PPA agreements enable companies to effectively, stably, and affordably reduce emissions. In the context of ESG reporting requirements, a PPA agreement brings a positive ESG profile, providing a transparent, locally applicable green energy solution, aligned with the global transition to sustainable practices and local empowerment. Woodburn’s PPA agreements reduce market volatility with predictable costs, enhance environmental awareness, and promote corporate sustainability. PPA agreements provide stability in a changing energy environment with always tailored pricing structures to meet needs at significantly lower rates compared to standard electricity prices.