French insurer Axa SA on Monday announced that it had signed a virtual power purchase agreement (VPPA) in Spain to procure 84 GWh of electricity per year from a solar farm in Andalusia.
Spanish renewables firm Ignis, the other party in the agreement, will soon start building the solar farm in Spain’s southern region, with the aim of getting it up and running by May 2025, Axa said.
The insurer will purchase 84 GWh annually, which will amount to 90% of the solar farm’s future output. This is enough to match the consumption of the buildings and data centres of Axa Group’s European entities, the company said. The VPPA has a term of ten years.
France’s Schneider Electric SE advised Axa on the selection of projects and VPPA negotiations. No other details were disclosed.
“The energy consumption of our buildings and the digital sector currently account for the largest share of the carbon footprint associated with our own operations. The environmental impact of this contract will be significant, as 75% of the electricity consumed by the Group's buildings and data centers is located in Europe,” commented Alexander Vollert, Group COO and CEO of Axa Group Operations.
For Ignis, the latest power agreement brings another corporate customer to its portfolio shortly after signing a ten-year solar VPPA with Swiss life science firm Lonza.