Telenor has signed a Power Purchase Agreement (PPA) to procure wind energy to power its Norwegian operations.
The Oslo-based telco announced this week that it has entered into a 10-year PPA with Hydro Energi AS to procure 330GWh annually from the Stor-Skälsjön wind park in Sweden. The power will be used to cover Telenor’s Norwegian consumption, and amount to more than 86 percent of the current power consumption in the country.
Comprising 42 turbines, the 260MW Stor-Skälsjön wind power project is located in Sundsvall and Timrå municipalities in Sweden. Construction has started and commissioning is planned for autumn 2023.
“As part of Telenor Group’s commitment to reduce our greenhouse gas emissions and meet our science-based targets, we are pleased to have entered into this agreement with Hydro for the provision of renewable energy to our operations in Norway. For Telenor to reduce our greenhouse gas emissions, sourcing renewable electricity is key, and Power Purchase Agreements are our preferred mechanism to do so, as they can contribute to new capacity of renewable energy,” said Cecilie Heuch, executive vice president, Chief People and Sustainability Officer at Telenor Group.
“We are looking forward to supply Telenor with renewable power as part of their sustainability agenda. When companies like Telenor are committing for the long term offtake of power from wind projects not yet in operation, they are contributing to new capacity of renewable power, as well as decarbonizing the Nordic power market,” added Olivier Girardot, head of Hydro Rein.
“This is the first transaction showing Hydro Rein and Hydro Energy’s ability to offer renewable power solutions to external customers. Hydro Rein aims at becoming the preferred supplier of renewable power for industrial clients, and Telenor is a great example of that," he said.
Stor-Skälsjön is partly owned by Hydro Rein, Hydro’s venture into renewable growth. Hydro Energi is part of aluminum company Norsk Hydro ASA.