A Lightsource bp solar farm. Image: Lightsource bp

Barclays has signed a 10-year power purchase agreement (PPA) with bp, allowing the bank to source a large proportion of its UK electricity demand from renewables projects.

Barclays detailed how it is already carbon neutral, but has now committed to purchasing up to 250GWh per year of power and associated Renewable Energy Guarantees of Origin certificates from additional new build renewable assets, with a focus on new build solar or wind that will start producing renewable power no later than 2025.

The renewable projects are to be chosen based on a number of socio-economic criteria, including support for local employment, the bank said, with the projects to benefit from the PPA to be announced in due course.

“We are delighted that through this agreement with bp we are able to support the transition to a low carbon economy, funding new renewable power sources whilst also furthering our commitment to reduce our own operational emissions,” Sasha Wiggins, Barclays’ group head of public policy and corporate responsibility, said.

In 2017, Barclays launched a range of green corporate banking products including loans, deposits, asset finance and innovation finance designed to help fund sustainability projects in the UK and beyond with the intention of stimulating corporate adoption of on-site renewables and energy efficiency.

Meanwhile, last year bp – which owns a 50% stake in utility-scale developer Lightsource bp – formed a joint venture with Aberdeen City Council to operate a solar power and green hydrogen hub.