UK grocer Sainsbury’s has signed a 15-year Purchase Power Agreement (PPA) with private asset management firm Capital Dynamics.
This deal will involve Sainsbury’s procuring 100% of the electricity generated by the newly operational 33.6 MW Pines Burn Wind Farm in Scotland, which features seven turbines that are expected to generate around 92,000 megawatt hours of clean, renewable electricity annually.
Sainsbury’s and Capital Dynamics said the electricity supplied from Pines Burn will meet approximately 8% of Sainsbury’s total annual energy needs across the UK. Retailers including Tesco, Co-op, and Sainsbury’s have all opted for the PPA route in recent years, working with a range of partners, as it is viewed as a cost-effective energy strategy.
Patrick Dunne, director if property, procurement, and EV Ventures at Sainsbury’s, said the completion of Longhill Burn site in West Lothian last autumn marked its eighth windfarm in Scotland.
“A state-of-the-art, sustainable source of new wind power, Pines Burn windfarm is helping us take another fantastic step towards reducing our reliance on carbon,” he added.
“Sainsbury’s was the first UK retailer to start purchasing wind energy directly to power our business back in 2008. Our commitment to the future of Pines Burn, which both enabled its construction and guarantees its long-term viability, builds on our proven track record of investing in sustainable technologies.”
Commenting on the Sainsbury’s deal, Barney Coles, managing director and co-head of clean energy at Capital Dynamics, remarked: “This commitment has been instrumental in bringing a new source of cost-effective clean energy to the UK’s grid.
“Strong corporate partnerships like Sainsbury’s are critical for advancing the UK’s position as a global leader in the renewable energy and for meeting national carbon reduction goals. We look forward to further collaboration with Sainsbury’s and other forward-thinking companies to accelerate the private sector’s role in the energy transition.”
Capital Dynamics noted that it remains focused on driving the transition to a low-carbon future by partnering with corporations and expanding its pipeline of “clean energy assets” across the UK.
[image credit: Green Retail World]
