Copenhagen, 18 September 2024 - The global market for purchasing renewable energy through PPAs is rapidly expanding and has long been the preferred purchasing method for corporate giants like Google and Microsoft, and Danish companies Novo Nordisk, Carlsberg, and Arla. With Reel, new types of businesses gain access to this growing renewable energy market.
Most businesses have historically been excluded from PPAs and instead rely on "green" electricity contracts based on the controversial certificate system for renewable energy. These certificate-based electricity contracts don’t increase the share of renewable energy on the grid and as a result, 42% of committed electricity emission reductions will not result in real-world mitigation.1 PPAs are a unique alternative, ensuring that the electricity purchases of companies result in the construction of new solar and wind parks. The new agreement for the Djursland solar park thus marks a milestone for businesses in the green transition.
PPAs are a game changer for the energy transition
Unlike the traditional method of purchasing renewable energy, PPAs are the only electricity agreement that directly result in the development of new renewable energy projects, offering both environmental and economic benefits. They achieve this by providing renewable energy developers with the revenue security they need to finance new parks. In exchange, the companies that sign these agreements lock in low, fixed electricity costs and actively contribute to the energy transition.
The 25 companies in the new agreement with Reel include Danica Ejendomme, Kvadrat, JP/Politikens Hus, Aquaporin, the Danish Society of Engineers (IDA), Viggo, GPV Group, and several local companies.
Morten Norup Fassov, Head of ESG at Danica Ejendomme, emphasises:
Danica Ejendomme views the collaboration with Reel and Energicenter Nord with great excitement, as it marks the beginning of our journey towards more renewable energy and, hopefully, more PPAs. With this agreement, Danica Ejendomme takes another step towards reducing our dependence on electricity produced from fossil energy sources and matching our consumption with renewable energy from a new, local solar park.
Well-designed solar parks combine climate goals and nature goals
Solar parks are among the quickest and most cost-effective renewable energy solutions available. And when they are designed to foster on-site biodiversity and include local communities, they can lead to a net gain in biodiversity.2
For Martin Romvig, CEO of Energicenter Nord, early local involvement and biodiversity were curcial in planning the Mesballe project:
At Energicenter Nord, we believe that the success of any renewable energy project lies not only in its technical execution but also in early community involvement. The new solar park in Mesballe is a prime example of how collaboration with local stakeholders ensures a project that benefits everyone. By prioritizing biodiversity from the outset, we’ve created a solution that supports both green energy goals and the local ecosystem. It’s this balanced approach that drives us, as a family-owned company, to develop sustainable, locally anchored energy solutions.
Energicenter Nord is reserving part of the park for local and wild species to flourish and is particularly focused on preserving bat habitats. Fruit trees will be planted under the transformer lines, and wildflowers will be sown around the solar panels. The fence around the solar park will be raised 20 cm above the ground, allowing local wildlife to access their usual habitats. Many of the initiatives have been developed in collaboration with the local community to create a solar park that balances climate and nature concerns.
Reel provides more companies with access to renewable energy
Reel believes that changing the way electricity is bought, used, and reported by companies needs to be front and center in the fight against climate change. Electricity is one of the main sources of CO₂ emissions globally3, with the commercial and industrial sectors accounting for two-thirds of total global electricity consumption.4
Jon Sigvert, CEO and co-founder of Reel, is excited about the milestone this agreement represents:
We are thrilled to announce this PPA together with Energicenter Nord and to have enabled an impressive group of international, Danish and Djursland-based companies to add more renewable energy to the Danish power grid. This PPA marks a significant milestone in our journey to make renewable energy accessible – and attractive – for all companies, regardless of size. We are especially pleased that the solar park's power will benefit so many local companies, ensuring even greater local value creation.
Reel is continuously working on new projects and is available to assist companies interested in PPAs.
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