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Case Study

How can I source 100% renewable energy?

01—
What does the customer gain?

Tesco, a leading retailer, recently announced a major green electricity project to source renewable power directly from five onshore wind farms and one PV installation in the UK, along with solar panels being fitted on Tesco’s UK stores.

The move is the next significant phase of the retailer’s commitment to use 100 per cent renewable energy across the Tesco Group by 2030 and will save 90,000 tonnes of CO2 per year. As part of this plan, BayWa r.e. is constructing a wind farm in form of a PPA contract with Tesco.

The site is located on the west coast of Scotland, approximately 3 km south-west of Port Glasgow and 30 km west of Glasgow. 

02—
In a nutshell

Corporate PPAs serve as economic structure for a fixed price hedge against rising electricity costs. Through the usage of green certificates, the company is planning to become 100% renewable.

Clear benefits are price stability, a long-term energy supply and the direct supply of Guarantees of Origin (GoO), which prove the origin of renewable energy in a transparent way and provide electricity consumers with the necessary reliability. 

The advantages of this concept, among others, are the fact that green megawatt hours are delivered to the company without any Operations & Maintenance burden. The project was enabled completely on a subsidy-free basis. Moreover, additionality was provided through active corporate engagement.

Another clear advantage is that the customer receives green electricity at a competitive price level.  

03—
What we did

The timeframe for this long-term-PPA contract is 15 years for 100% of the Inverclyde wind farm’s output, securing the direct procurement of renewable power at a competitive price level.

BayWa r.e. is proud to be partnering with Tesco and providing the retailer with renewable energy as a result of securing a PPA for the Inverclyde Windfarm. 

04—
Where do we go?

A great opportunity and encouraging trend in the industry – subsidy-free projects and post-subsidy PPAs.

Existing renewable energy installations can be amortized and offered to customers in the form of a PPA. The project, which is currently being built, will go live in 2021.

Our supply chain and long-term business sustainability depend on the health of the natural environment. This project represents a major milestone in our journey to using 100 per cent renewable electricity by 2030.

Jason Tarry
CEO Tesco UK and ROI

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