EDF Renewables agrees PPA with Tesco for renewable energy

Octopus Renewables to buy nine windfarms from RES Group for €100m. Source: BKnight97

EDF Renewables has signed three power purchase agreements (PPA) with Tesco to supply renewable energy to the company. The three PPAs cover two onshore windfarms and one solar installation and will last for 15 years.

The two onshore windfarms will be located in Scotland, the first of which will be the expansion of the Burnfoot East windfarm in Clackmannanshire. The windfarm currently has a capacity of 42MW but EDF will expand this by 10.8MW.

The second onshore windfarm will also be located in Scotland and have a capacity of 43MW. EDF will also install 15,000 solar panels on 17 Tesco stores in England, which will have a combined capacity of 5MW when complete in 2020.

EDF Renewables CEO Matthieu Hue said: “We are very pleased to be working with Tesco which is already one of EDF’s biggest customers in the UK. These projects show the ability of EDF to provide diverse solutions for customers in terms of low cost renewable electricity.

“These exciting projects also demonstrate our ability to develop subsidy-free solar and wind in the UK as well as underpinning the important part these technologies play in de-carbonising the UK electricity system to reach the country’s net zero targets by 2050.”

Tesco CEO Jason Tarry said: “Our supply chain and long-term business sustainability depend on the health of the natural environment. Our customers and colleagues expect Tesco to play its part in caring for the planet.  This project represents a major milestone in our journey to using 100 per cent renewable electricity by 2030.”

EDF Renewable’s parent company EDF’s stock price currently stands at €9.21 at the time of writing, giving the company a market capitalisation value of €28.11bn. EDF’s share price has fallen throughout 2019, having started the year at €13.85 and peaked at €15.01 on 6 February.

EDF share price in 2019

Tesco

Tesco has committed to using 100% renewable energy to power its operations by 2030, and with solar panels on its stores it hopes to generate 10% of its electricity on-site by 2030.

Along with the PPAs with EDF Renewables, the company has also agreed to purchase power from windfarms owned by BayWa and Scottish Renewables. The total amount of projects agreed by Tesco is five onshore windfarms, one solar farm and solar panels fitted to 187 stores in total.