The landmark Hultsfred solar project, which was designed and is owned by Neoen and Alight, is expected to start construction in the second half of 2023.
According to the long-term agreement, the solar park will supply H&M Group with renewable energy and significantly lower H&M Group’s carbon footprint.
This is currently the biggest solar PPA in Sweden. The Hultsfred solar park will have a minimum 90 MWp capacity and provide enough energy to power over 16,000 houses for a whole year.
The Swedish fashion retailer H&M Group and the premier solar developer and independent power producer in Europe, Alight, have signed a power purchase agreement (PPA) for 90 MWp of renewable energy in Sweden. Neoen is one of the world’s top producers of only renewable energy.
The long-term arrangement brings H&M Group one step closer to its objective of obtaining all of its electricity from renewable sources by supplying the company with local renewable energy and guarantees of origin from the solar park in Hultsfred, Sweden. The largest solar PPA ever signed in Sweden is this one.
The project, which will be jointly constructed and owned by Neoen (the primary shareholder) and Alight, will have a minimum 90 MWp of capacity overall.
Low-carbon photovoltaic panels will be erected all around the runway at the Hultsfred airport in southeast Sweden to construct it. The second half of 2023 is set aside for construction, with commissioning to follow in 2025.
The H&M Group has set the audacious aim of increasing the annual source of renewable electricity to 100% by 2030 and reducing the company’s absolute scope 1 and 2 and scope 3 emissions by 56% by 2030 and from a baseline of 2019.
Ulrika Leverenz, Head of Green Investment of H&M Group, said “We are very excited to see Hultsfred’s solar park becoming a reality in the near future. Renewable energy plays a crucial role in our climate roadmap to reduce emissions and achieve net-zero by 2040.”
“Business and countries must show leadership to limit global warming to 1.5°C according to what the climate science urges us to do. Power purchase agreements like this one with Neoen and Alight bring us one step closer to meet our ambitious climate goals and increase the availability of clean energy in the country.”
PPAs are a crucial component of the company’s green initiatives and aid it greatly in achieving its climate goals.
H&M Group will contribute new green electricity capacity to the Swedish grid and make the project financially feasible by entering into this PPA.
Harald Överholm, CEO of Alight, said “We are very proud of our partnership with Neoen and H&M Group for signing a power purchase agreement that enables us to rapidly build new clean electricity in Southern Sweden, where the demand for electricity is the highest.”
“When a large corporation and power user decides to go big on renewable energy, it has a real impact on society as a whole, while at the same time creating more energy security.”
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