Centrica and Vodafone Sign Major PPA for Five Solar Farms in England

Centrica and Vodafone Sign Major PPA for Five Solar Farms in England

(IN BRIEF) Centrica and Vodafone have signed a Power Purchase Agreement with MYTILINEOS S.A for the output from five solar farms under construction in England, which will generate a total of 216GWh of electricity and displace more than 53,000 tonnes of CO2e every year. Vodafone will purchase a significant proportion of the electricity output from the solar farms, securing their development and bringing additional renewable power provision to the UK grid. The remainder will be sold through Centrica’s Energy Marketing & Trading business. The deal supports the UK government’s ambition to promote clean, affordable energy and boost long-term energy independence and security.

(PRESS RELEASE) WINDSOR, 21-Feb-2023 — /EuropaWire/ —  Centrica (LON: CNA), a British multinational energy services and solutions provider, and Vodafone are proud to announce the signing of a major Power Purchase Agreement (PPA) with MYTILINEOS S.A for the output from five solar farms under construction in England. This is the second such agreement between the two companies and underscores their shared commitment to promoting clean, green energy in the UK.

Under the terms of the PPA, Vodafone UK will have access to high-quality, affordable renewable electricity for the next decade, providing price certainty and improved energy security. In fact, Vodafone already sources 100% of its grid electricity from certified renewable sources in the UK. This new solar PPA means that by 2025, around 44% of Vodafone’s annual energy requirements will come from UK-based renewable power sources, thanks to this agreement and others already in place.

The five solar farms, located in Norfolk, Nottinghamshire, Staffordshire, Buckinghamshire, and Dorset, will generate 216GWh of electricity and displace more than 53,000 tonnes of CO2e – every year¹. This is the equivalent of taking around 31,400 cars off the road². Construction on the solar farms will begin this year, with energy generation expected to commence from early 2024.

Vodafone will purchase a significant proportion of the electricity output from the solar farms, securing their development and bringing additional renewable power provision to the UK grid. The remainder will be sold through Centrica’s Energy Marketing & Trading business.

The deal between Vodafone, Centrica, and MYTILINEOS supports the UK government’s ambition to promote clean, affordable energy and boost long-term energy independence and security. Power Purchase Agreements are a key component of Vodafone’s renewable energy procurement strategy. This latest agreement follows an announcement last year to purchase a significant proportion of power from three new UK solar farms for the supply of 109 GWh of renewable electricity. The first of these is now fully operational, with the others to follow in the coming months. In combination with two onshore wind farms in Northamptonshire and Lincolnshire, Vodafone UK has secured access to renewable power from 10 sites across the UK.

Ahmed Essam, UK CEO, Vodafone, said: “The energy crisis has highlighted we must work together – as governments, businesses and society – to change how we produce and consume energy. 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. Importantly, this also gives Vodafone UK improved energy security and price certainty and will help us achieve net zero³ for our UK operations by 2027.”

Chris O’Shea, Chief Executive Officer 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 to how large organisations like Vodafone decarbonise their operations. We’re delighted to build on our longstanding relationship with Vodafone and support them on their net zero journey.”

Yiannis Kalafatas, Chief Executive Director of MYTILINEOS’ Energy Sector stated: “We are excited about this second transaction with Vodafone, as this demonstrates our capability to support renewable energy and energy independency 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.”

NOTES

¹ -Source: How much would getting solar panels offset my impact? | LEOHT.

²- Source: Average CO₂e emissions/car/year in UK 1,682,383 grams of CO₂e Average CO2 Emissions per Car in the UK | NimbleFins

³ – Scope 1&2

• Vodafone UK Media Relations Team

  T: 01635 693693
  E: ukmediarelations@vodafone.com

• Michael Pullan, Head of Digital Communications

  T: 07557 619446
  E: michael.pullan@centrica.com

SOURCE: Centrica plc