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Leroy Merlin Poland Partners with Better Energy to Green its Operations

The PPA guarantees an annual volume of 14 GWh of renewable energy, which equates to approximately 20 percent of Leroy Merlin's domestic electricity consumption.

April 04, 2024. By Abha Rustagi

Leroy Merlin Poland has inked a deal with Better Energy to procure green energy for its chain of construction and decoration shops.

The Power Purchase Agreement (PPA) guarantees an annual volume of 14 GWh of renewable energy, which equates to approximately 20 percent of Leroy Merlin's domestic electricity consumption. This volume is sufficient to power roughly 7,000 Polish households annually. The agreement is tied to Better Energy’s Chelmno solar park, which is currently in the construction phase, with the PPA expected to kick in by 2025.

Under the terms of the 10-year physical PPA, Leroy Merlin will source renewable energy directly from Better Energy's Chelmno solar park. This arrangement, known as a physical PPA model, involves the distribution of green energy from the producer to the off-taker through existing grid infrastructure and a selected balancing entity. For Leroy Merlin, this deal not only signifies a reduction in emissions but also ensures a long-term, stable supply of renewable energy at an attractive price point.

CEO of Leroy Merlin Poland, Krzysztof Kordulewski, highlighted the significance of this agreement, stating, “Our green logo is proof of our obligation. Signing a contract for the long-term supply of energy from renewable installations is not only a source of satisfaction but, above all, a milestone in our energy transformation.” He further emphasized Leroy Merlin's commitment to social and environmental responsibility, with energy transformation being a key pillar of their strategy.

Mikkel Thorup, Senior Director of PPA at Better Energy, emphasized the mutual benefits of such partnerships, stating, “By signing PPAs with Better Energy, companies contribute to the construction of green installations and adding new renewable capacity to the power grid... By working with us, they can effectively meet their climate goals and future-proof their business.”

With the 10-year PPA in place, Leroy Merlin Poland will secure a stable, long-term supply of green renewable energy from the Chelmno solar park, starting from January 2025. This move is expected to cover around 20 percent of the company's energy needs, resulting in a significant reduction of more than 8,000 tons of CO2 emissions annually.

Reducing emissions is a critical component of Leroy Merlin Poland’s climate goals, which aim to cut total emissions for the company and its value chain by 50 percent by 2035 compared to 2022, ultimately achieving climate neutrality by 2050.

Tags:

Power Purchase Agreement

Krzysztof Kordulewski

Mikkel Thorup