21 Feb, 2023: Vodafone UK has signed a significant corporate solar power deal in the UK, enabling the company to obtain affordable, clean and high-quality renewable electricity for the next decade. This will ensure price predictability and increased energy security. In conjunction with other agreements, this new solar PPA (Power Purchase Agreement) will meet nearly 44% of Vodafone’s yearly energy requirements from UK-based renewable energy sources by 2025. Vodafone currently uses 100% certified renewable sources for grid electricity in the UK.
Under the agreement between Vodafone, MYTILINEOS and Centrica, five solar farms located in Norfolk, Nottinghamshire, Staffordshire, Buckinghamshire and Dorset will generate 216GWh of energy and decrease over 53,000 tonnes of CO2 emissions each year, which is equivalent to removing approximately 31,400 cars from the road. The construction of the solar farms will commence this year and energy generation is anticipated to begin from early 2024.
Vodafone plans to acquire a substantial amount of electricity produced by these solar farms, which will ensure their continuous growth and contribute more renewable energy to the UK power grid. Any surplus electricity will be sold by Centrica’s Energy Marketing & Trading Business.
Vodafone’s approach to obtain renewable energy relies heavily on Power Purchase Agreements (PPA). Last year, they declared their intention to acquire a significant amount of electricity from three new solar farms in the UK, which would provide 108GWh of renewable energy. One of these solar firms is now completely operational, while the remaining two are expected to be functional soon. Vodafone UK, has also secured renewable energy from two onshore wind farms in Northamptonshire and Lincolnshire, bringing the total number of renewable energy sites they have access to in the UK to ten.
Commenting on this agreement, CEO, Vodafone UK, Ahmed Essam, said, “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 zero for our UK operations by 2027”.
“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 decarbonise its operations. We’re delighted to build on our longstanding relationship with Vodafone and support its net zero journey”, said Chris O’Shea, CEO, Centrica
This agreement aligns with the UK government’s objective of prioritising domestically produced, environment friendly, and cost-effective energy. As a result, this will enhance the country’s energy self-sufficiency in the long run.