Telco A1 Bulgaria and the Bulgarian clean energy investment group Renalfa AD have signed a long-term Power Purchase Agreement (PPA) for solar energy.

The contract will see the energy firm supply the telco 20,000 MWh of clean energy per annum for the next 10 years. The energy will be generated by a 33MW solar plan located in South Bulgaria.

“As part of A1 Telekom Austria Group we are aware of our responsibility towards the environment and has set an ambitious environmental target: reducing CO2 emissions to net zero by 2030. This will be achieved by decreasing our own carbon footprint and gradually switching to energy from renewable sources,” said Alexander Dimitrov, chairman of the management board and CEO of A1 Bulgaria. “The signed PPA for solar energy is a significant step for A1 Bulgaria on the path to clean energy transition. As a leading communications operator it is our obligation to drive a green and digital transformation with our expertise.”

Renalfa said this deal marks the first “sleeved” PPA on the Bulgarian market; in a sleeved PPA, an intermediary utility company handles the transfer of money and energy to and from a renewable energy (RE) project on behalf of the buyer. Renalfa will provide the sleeving service to A1 via its subsidiary Toki.bg.

“Corporate PPAs are the backbone of the clean energy transition and we are happy to announce the first 'sleeved' PPA on the Bulgarian market," said Yuri Katanov, executive director of Renalfa. “We are proud to partner with such an industry leader as A1. I would like to congratulate the company and its management for pioneering such an innovative business model. Together, we have addressed and resolved one of the main obstacles for bigger market integrations of renewables.”

A1 operates a core data center in the capital city of Sofia, and smaller facilities in Varna, Shumen, Plovdiv, Montana it says span a total of more than 500 sqm (5,380 sq ft).