Centrica will trade the additional power generated at the three sites in the balancing and merchant power markets. Image: Centrica.

Vodaphone and Centrica have signed a power purchase agreement (PPA) with MYTILINEOS S.A for the output of three solar farms in the UK.

The solar farms are currently under construction in Lincolnshire, Worcestershire and Nottinghamshire, and are expected to have a capacity of 110MW once completed at the end of 2022.

Around 55GWh of the electricity generated at the sites will be used by Vodaphone, whilst Centrica will sell the rest to balancing and merchant power markets through its Energy Marketing & Trading business.

“Building on our longstanding customer relationship with Vodafone, this deal further underlines our reputation as a leading player in the European energy markets,” said Cassim Mangerah, managing director of Centrica Energy Marketing and Trading.

“Through helping companies like Vodafone deliver on their green procurement strategies, we’re pushing the green transition forward through supporting the development, management and optimisation of new renewable energy assets.”

As well as working as an energy trader, Centrica created a new division – dubbed Centrica Energy Assets – in October 2021 to allow it to target the development of solar and other low carbon assets. It has set a target of 650MW of solar assets by 2026 and in April started construction on the 18MW Codford Solar Farm.

Vodaphone is aiming to be net zero in the UK by 2027, and PPA’s are key to its renewable energy procurement strategy. The deal with Centrica and MYTILINEOS follows a similar such agreement for the development of two onshore wind farms in Northamptonshire and Lincolnshire, which will supply 75GWh of electricity per year to the telecommunications multinational.

Combined, Vodafone UK has now signed PPA’s worth more than 20% of its annual energy requirement.

The PPA helps secure MYTILINEOS’ Renewables & Storage Development Business Unit’s development of the sites. The Greek conglomerate is continuing to expand its operations, having acquired a 14MW solar portfolio in the Republic Ireland from Elgin Energy in July 2021, and extended its partnership with Huawei in March 2021.

“We are excited about this transaction with Vodafone, as this is yet another important milestone in our development strategy in Europe,” said Nikos Papapetrou, general manager of the RSD Business Unit of MYTILINEOS.

“Corporate PPAs are a fundamental instrument and as they help companies to decarbonize and reduce their carbon footprint. MYTILINEOS is proud to be in the forefront with Vodafone and Centrica.”

The corporate PPA market in the UK is continuing to pick up pace, as businesses increasingly look for a route to decarbonise their operations. NextEnergy Capital for example, has signed two sizable PPA’s this year, with Goldman Sachs and with DLA Piper.