Vodafone has signed a power purchase agreement (PPA) to procure solar power in the UK.

The company this week announced its second major corporate solar PPA in the UK in a 10-year deal with Centrica and Mytilineos.

vodafone eco tower.jpg
– Vodafone

The telco is to procure energy from five solar farms, located in Norfolk, Nottinghamshire, Staffordshire, Buckinghamshire, and Dorset, totaling 232MW that will generate a total of 216GWh of electricity. Construction will begin this year; energy generation is expected in early 2024.

Vodafone said it will procure ‘the majority’ of the farms’ output, with the remainder sold through Centrica’s Energy Marketing & Trading business. In its own release, Mytilineos said 50 percent of the total electricity output - equal to 108 gigawatt hours of renewable electricity- will be delivered through a sleeving agreement.

Ahmed Essam, UK CEO of Vodafone, said: “Today’s announcement ensures a significant proportion of our energy requirement, for at least the next 10 years, is home-grown in the UK. I’m pleased Vodafone is helping to progress the development of new renewable power sites and supporting the delivery of green energy to the UK grid."

Essam added the deal gives Vodafone ‘improved energy security and price certainty’ ahead of its goal to achieve net zero for its UK operations by 2027.

Combined with agreements already in place, the company said the new PPA means around 44 percent of annual energy needs will be fulfilled by UK-based renewable power sources by 2025. The company noted 100 percent of its energy is from certified renewable sources through offsets.

Last year Vodafone announced a 10-year PPA deal for three new solar farms in the UK, again with Centrica and Mytilineos.

Chris O’Shea, CEO of Centrica, said: “Power purchase agreements such as this are going to be essential to the growth of renewable energy in the UK and Europe, helping secure guaranteed returns for developers, and encouraging growth in the sector. They are also key for helping large companies like Vodafone decarbonize its operations. We’re delighted to build on our longstanding relationship with Vodafone and support its net zero journey.”

Yiannis Kalafatas, chief executive director of Mytilineos’ Energy Sector, added: “We are excited about this second transaction with Vodafone, as this demonstrates our capability to support renewable energy and energy independence in the UK. We are also proud of being able to achieve such a milestone – both as a developer and a generator – by signing the biggest solar corporate PPA deal in the UK to date.”

Mytilineos was advised by DLA on the transaction.

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