The manufacturer of trains and digital mobility solutions Alstom together with Schneider Electric, a world leader in the digital transformation of energy management and automation, have announced a new and important Power Purchase Agreement (PPA1) focused on the development of solar energy in Spain.
The project consists of the development of a solar park of 160 GWh per year, a production that will cover approximately the equivalent of 80% of Alstom’s electricity consumption in Europe, as reported by the company in a statement.
Bet on renewables
The solar park is expected to start operating in early 2025 and the contract will last for 10 years. “We are very proud to take concrete steps to help develop renewable energy sources, and we are pleased to build on Schneider Electric’s leadership in these types of strategic purchase agreements,” said Cecile Texier, Alstom’s Vice President of Sustainability and Corporate Social Responsibility. .
The company has explained that Schneider Electric has supported Alstom and its promoter in the identification, negotiation and contracting of a renewable energy project in Spain. Alstom and its developer also benefit from an attractive structure, under Schneider’s advice on the project, strategy management, and other ongoing negotiations throughout the VPPA (virtual PPA) process.
Objectives to reduce emissions
This collaboration between Alstom and Schneider Electric will boost efforts to meet Alstom’s goal of accelerating decarbonisation related to energy consumption at Alstom facilities and sites in Europe. The agreement furthers Schneider’s continued commitment to the development of power purchase agreements in Europe, as a leading advisor on PPAs.
The announcement comes shortly after the Science Based Targets Initiative (SBTi)2 validated Alstom’s near-term emissions reduction targets as consistent with the levels needed to meet the Paris Agreement targets. The SBTi has validated the corporate GHG emission reduction targets submitted by Alstom and confirmed that Alstom’s scope 1 and 2 targets are in line with a 1.5°C trajectory.