Energy developers sign Sweden’s largest power purchase agreement

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The French renewable energy developer Neoen and the Swedish solar developer Alight have announced the signing of Sweden’s largest power purchase agreement to date. The two companies have agreed to sell power from a 90 MW solar plant currently under construction in Hultsfred, Kalmar county, in southern Sweden, to Swedish clothing retailer H&M Group.

Construction will begin in the second half of 2023. For the project, Alight said it will use solar panels with a low carbon footprint from an unnamed manufacturer. The project is expected to be completed by 2025.

“This is our first power purchase agreement in Sweden and the Nordics. “Nearly half a gigatonne of renewable energy is now included in our long-term contracts in the region,” said Neoen CEO Xavier Barbaro.

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Sweden’s largest power purchase agreements

Alight signed a five-year power purchase agreement for an 18 MW solar park with Swedish restaurant group Martin & Servera in December 2021. It signed a 10-year agreement in June 2021 to construct an 8 MW solar park in southern Sweden. It has closed more than 50 PPAs in Sweden to date.

According to research firm Becquerel Sweden, Sweden could add 750 MW of solar capacity by 2022. In 2021, the country added 499.7 MW of solar, a 25% increase over 2020. Some unsubsidized projects are already under construction in the country. Consequently, their current popularity is most likely due to generally favourable solar conditions.

“We are very excited to see Hultsfred’s solar park become a reality soon. Renewable energy is critical in our climate roadmap to reduce emissions and achieve net-zero emissions by 2040. According to climate science, businesses and countries must take the lead in limiting global warming to 1.5°C.

Power purchase agreements like this one with Neoen and Alight move us closer to meeting our ambitious climate goals. Furthermore, it will increase the availability of clean energy in the country, ” stated Ulrika Leverenz, H&M Group’s Head of Green Investment.