Infranode announced that its solar partner, Alight, has entered into power purchase agreements (PPA) with H&M Group to develop three new solar parks.
Infranode will be the principal debt provider for the largest park within this project. The partnership between Infranode and Alight commenced in 2017, establishing a joint portfolio consisting of four solar parks, nearly 50 rooftop solar installations, and various other facilities related to renewable energy.
Alight and H&M - PPA Details
The Power Purchase Agreements (PPA) encompass three ground-mounted solar parks detailed below:
Solar Park Location | Solar Park Capacity |
Blekinge | 13 MW |
Södermanland | 6 MW |
Halland | 4 MW |
A PPA is a contractual arrangement between a power generator (i.e. Alight) and a buyer (i.e. H&M). The agreement outlines the terms for the sale and purchase of electrical power over an agreed-upon period. PPAs are common in the renewable energy sector, where they facilitate the financing and development of projects by guaranteeing a revenue stream for the power producer.
Infranode confirmed that the financing for Blekinge Park is a collaborative effort with Alight, while Alight solely finances the other two parks.
According to Alight, the construction has already commenced for Blekinge Park (the largest asset), and the construction of the remaining two parks is scheduled to start in Europe’s spring. All three parks are expected to be operational by early 2025, providing H&M Group with renewable electricity. Once operational, Alight will be the owner and
Collectively, these projects are projected to generate a minimum of 24 GWh of clean electricity, equivalent to the annual electricity consumption of over 4,800 homes.
This development builds on the partnership between H&M Group and Alight, who signed a PPA in December 2022 for the joint development and ownership of a 100 MW solar park in Hultsfred, Sweden, in collaboration with French renewable energy company Neoen.
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Alight, Infranode and H&M - Leadership Comments
Infranode - Head of Sustainability at Infranode
According to Johan Tiselius, Head of Sustainability at Infranode, Alight has significantly transformed the solar power landscape in Europe. He expressed that Infranode is pleased to have supported them in commencing the construction of a fourth solar park that will provide clean energy to H&M Group.
As investors in solar power as part of their decarbonization agenda, Infranode remains dedicated to contributing to the sustainability of Nordic society.
Alight - CEO
Harald Överholm, CEO and co-founder of Alight said: “We’re honoured that H&M Group has chosen to bolster our partnership by signing PPAs to build three new solar parks in Sweden. This commitment by H&M Group makes the projects viable and adds new green power capacity to the Swedish grid. It’s a win for both corporate and community sustainability.”
About the partnership with Infranode, Överholm added, “Our business model is to sell the clean energy to businesses at a fixed cost backed by a power purchase agreement. The long-term investment we have made together with Infranode is an enabler in the agreement we have now signed with H&M Group”.
H&M - Head of Green Investment
Ulrika Leverenz, the Head of Green Investment at H&M Group, expressed enthusiasm about the opportunity to expand their renewable energy portfolio with the addition of three new solar parks to the existing power purchase agreement (PPA) signed with Alight in 2022.
This move aligns with H&M’s commitment to sourcing exclusively renewable electricity by 2030. Leveraging renewable energy is a crucial element in their strategy to decrease emissions and attain a net-zero status by 2040.
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