Telco Signs Three ENGIE and Statkraft Renewable Energy PPAs

Utility and energy transition advocates ENGIE and Statkraft, Europe's largest generator of renewable energy, have signed three new Power Purchase Agreements (PPAs) to accelerate the environmental goals of French telecommunications company iliad Group.

Part of iliad’s continued effort to support the creation of new renewable energy capacity across the geographies it serves, the group will purchase electricity generated by solar farms in Sainte-Gemme in France, Latina in Italy and Resko in Poland. The deals are set to last between 10 and 15 years from when the projects go live next year.

Energy pledges of iliad Group

By 2035, iliad has pledged that half of its electricity consumption in Poland and Italy and a fifth in France will be covered by PPAs. Of the group’s three geographies, Poland and Italy are the countries that have the highest-carbon energy mix.

In its Climate Plan, iliad committed to using renewable energy to cover its direct electricity consumption. Its renewable electricity production capacity is now around 140GWh, equivalent to the annual domestic consumption of a city like Italy’s Padua.

By 2025, the group’s direct electricity consumption covered by renewable energy supplied under PPAs will come in at 13%.

“Digital is the future, and that future has to be carbon-free,” said iliad Group’s CEO Thomas Reynaud, thanking ENGIE and Statkraft for their partnership and aiding them in the major step towards reaching the goals of iliad’s climate plan. “This is why we’re keeping up the pace of our support for renewable energy by respecting our pledges on green energy supplies, while of course still working to optimise our energy consumption.

“These three new PPAs clearly demonstrate how we’re seeking to take climate action in all of our geographies because there are no borders when it comes to carbon neutrality.”

Benefits of renewable energy projects

Conscious of the impact of solar farms on surrounding landscapes, the three new solar farms all carry the EKOenergy label, which guarantees that the electricity comes from facilities that have a minimal impact on the environment, while promoting renewable energy worldwide. 

This string of PPAs also further establishes ENGIE’s leading position in this space, with the energy giant selling a substantial portion of the capacity of renewable electricity produced by its wind and solar power plants. ENGIE’s total corporate power purchase agreement (CPPA) portfolio currently stands at 7.3GW.

“Following on from our first PPA signed with the iliad Group in early 2023, we’re proud to be further supporting the group over the long term with carrying out its climate strategy,” Edouard Neviaski, CEO of ENGIE Global Energy Management & Sales added. “By rapidly

developing its renewable energy capacity, ENGIE is helping its customers press forward with their energy transition processes towards a decarbonised and more local economy.”

Science Based Targets — helping action meaningful climate change initiatives

Established in 2015, the Science Based Targets initiative (SBTi) — a collaboration between the Carbon Disclosure Project (CDP), United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. — unites more than 1,000 companies to set science-based climate targets and leads the way to a zero-carbon economy, helping boost innovation and drive sustainable growth.

Setting a global standard and encouraging companies to adopt ambitious targets for reducing their greenhouse gas emissions aligned with the targets set out in the Paris Agreement — limiting global warming to 1.5°C above pre-industrial levels — SBTi has validated iliad’s carbon reduction pathway, which tackles Scope 1, 2 and 3 emissions.

The decarbonisation roadmap will apply to the entire group, including suppliers, customers and partners.

We are proud to support our partner iliad on their journey towards a greener future,” Hallvard Granheim, Executive Vice President of Statkraft Markets said. “Our PPAs are a testament to our ambition to structure complex contracts, exactly tailored to the unique needs of our customers.”

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