Image Credit: RWE
In a groundbreaking move, energy behemoth RWE has sealed a monumental Power Purchase Agreement (PPA) to bolster the UK subsidiary of food titan Kerry Group with sustainable solar power for a decade starting from 2025.
This visionary decade-long solar PPA, marking RWE's maiden venture in the UK, is poised to cater to approximately half of Kerry's electricity requirements across the UK.
The intricately structured deal comprises two distinct financial arrangements, aptly labeled as "pay-as-produced" agreements, which commit to delivering power generated by RWE's cutting-edge UK solar projects situated at Cotmoor in Nottinghamshire and Copse Lodge in Northamptonshire. These pioneering projects boast a formidable potential installed capacity of 49.9MW each.
While Cotmoor has already clinched a final investment decision, with comprehensive construction slated to commence later this year, the Copse Lodge Solar Farm is poised to follow suit, with anticipated initiation in 2025.
This strategic alliance heralds a significant stride forward in RWE's ambitious agenda, which envisions commissioning 450MW of novel solar and storage projects in the UK annually. This commitment underscores the firm's unwavering resolve to funnel €8 billion worth of investments between 2024 and 2030 into sustainable energy infrastructure.
Furthermore, the company's proactive stance has been underscored by its recent triumphs, including securing agreements for six UK solar projects in the latest Contracts for Difference Auction Round 5, signaling its steadfast dedication to driving the renewable energy revolution forward.
"Solar power is one of the quickest and easiest renewable technologies to deploy and can quickly make a significant contribution to the UK's energy system," said Olaf Lubenow, head of commodity solutions for the UK, North and South Europe at RWE Supply & Trading. "Through the build-out and operation of our UK portfolio of over 4.4GW of solar projects, our clean electricity can help even more businesses like Kerry Group to decarbonise for the future by sourcing clean green electricity for years to come.
"We're delighted to be able to support the transition of businesses away from fossil fuel-sourced electricity and to be making a meaningful contribution to the UK's net zero ambitions."
The deal will also help Kerry Group achieve its goals of reducing its combined Scope 1 and 2 carbon emissions by 55 percent by 2030 and achieving net zero by 2050.
"Kerry is committed to the fight against climate change," said Juan Aguriano, global head of sustainability at the company. "Power purchase agreements represent a key pillar of Kerry's renewable energy strategy to deliver on these commitments. The agreements with RWE are Kerry's first PPAs in the UK and represent approximately 50 percent of Kerry's electricity volume used in the country.
"We are proud to support the UK's transition to low-carbon electricity and look forward to supporting more projects like these in the future in Europe and around the world."