Better Energy, a Danish developer, has signed a power purchase agreement (PPA) with Arla, a Danish dairy firm, to create four new solar parks.
Arla has agreed to buying the majority of the power generated by the parks over a 10-year period. The parks will generate about 250 GWh per year, and the PPA would cover roughly a third of Arla Denmark’s entire power usage.
The parks are planned to start producing solar power in early 2023, and all of them are projected to be supplying electricity by the beginning of 2024. Better Energy owns the 280-hectare solar parks and is responsible for its development, management, and upkeep. The four solar parks will be spread across Denmark.
The first park will be erected in Ebberup, Assens Municipality, while the remaining three parks’ final locations are still being determined. The partnership is the largest power purchase agreement in Danish history, supplying the grid with fresh and additional green electricity that is subsidy-free.
Arla’s emissions from dairy and logistics will be reduced as a result of the collaboration, according to Helle Müller Petersen, Country Director at Arla Denmark. Arla’s goal is to switch to 100 percent green power by the end of 2025, and has just established a new 2030 climate target of doubling CO2 reduction in operations from 30 to 63 percent.
Arla will convert to 100 percent green electricity in Europe by the end of 2025 as part of its new climate strategy. This will be accomplished mostly through green electricity purchase agreements and investments in wind and solar projects.