Better Energy, a Danish renewable energy developer, has signed a ten-year power purchase agreement (PPA) with Telenor and Telia in Denmark. Under the deal, Better Energy will oversee the construction of a solar park, which is scheduled to be completed and operational by the end of 2024.
Better Energy will own and be responsible for the park’s development, operation, and maintenance.
“In Europe, we are facing three critical crises: a climate crisis, a biodiversity crisis, and an energy crisis,” stated Rasmus Lildholdt Kjaer, CEO of Better Energy. “How rapidly we adapt to renewable energy is crucial to the world we will live in afterwards. With this agreement and the active choice to buy new green energy, Telia and Telenor help accelerate the green transition in Denmark and Europe.”
Over a ten-year period, the Swedish and Norwegian telecoms will undertake 125 GWh each year, which is around 75% of the energy consumed by the businesses’ mobile networks in the country.
The deal is allegedly to be a “pay-as-produced” PPA rather than a 24x7 PPA, which means that the energy produced will not correspond to the times when Telenor’s network requires power. Under this kind of agreement, the generator doesn’t have to take any volume risk as there is no target production volume. However, the off taker will have to bear the risk in the event of underproduction.
Telenor inked a 10-year PPA with Hydro Energi AS last month to purchase 330 GWh per year from the Stor-Skälsjön wind park in Sweden to power its Norwegian operations.
“Today, carbon dioxide emissions from the operation of the mobile network account for about a third of our total emissions,” remarked Telia. “That’s why we’re committed to provide the best possible networking services with the smallest possible carbon footprint. With the agreement, we contribute significantly to the expansion of renewable energy production, which is completely in line with Telia’s ambition of zero emissions by 2030.”
In January, Better Energy has entered into a PPA with 12 corporates. The deal involves the construction of a solar park, which is expected to be completed in 2023 and will produce approximately 70,000 MWh annually, equivalent to the energy consumption for 44,000 Danes on average.
