Deutsche Bahn signs PPA for hydropower from Norway

German railway company Deutsche Bahn AG (DB) is adding more hydropower to the portfolio of renewable energy sources contracted to help it meet a climate-neutrality goal by 2040.

The company said on Wednesday it will be purchasing 190 GWh of electricity annually from the Mageli hydropower plant (HPP) in Norway under a 10-year contract with Norwegian state-owned utility Statkraft AS. This is DB’s first cross-border, long-term power purchase agreement (PPA).

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“ Our ambitious climate protection plans are outstripping supplies of domestically generated renewable power. That makes this a strategically important contract – for both partners as well as for climate protection,” said CEO Richard Lutz.

The Nordlink North Sea cable, connecting Norway and Germany since April, makes such agreements possible. Supply under the contract is planned to start in 2023.

The company has also signed new green energy contracts in Germany -- for more than 90 GWh of hydroelectric power and for wind power from a park whose 20-year subsidy has ended.

In November 2020, DB announced PPAs for 780 GWh of green electricity from hydro, solar and offshore wind parks. The contracts support the company’s goal to be sourcing 100% renewable electricity for its trains by 2038. Subsidiary DB Energie, the fifth largest electricity supplier in Germany, is gradually replacing contracts for energy from fossil fuels with renewables. It is creating a mixed portfolio for traction power requirements, with different contract periods, energy sources, feed-in regions, partners and prices, so as to support a high level of supply security.

Renewables already represent over 61% of the 10 TWh of traction power required by DB annually.