A first long-term Power Purchase Agreement (PPA) has recently been signed with a leading independent power producer.
Allego will begin receiving 25 gigawatt hours of renewable energy beginning January 1, 2023, to support the majority of the Company’s operations in Germany. The signed agreement represents approximately 16% of Allego’s entire European charging network.
In a continued effort to hedge input costs and commodity volatility, the Company expects to sign additional PPAs to cover more than 80% of Allego’s operations in the upcoming period.
For those not familiar with what a Power Purchase Agreement is, this is a contractual agreement between energy buyers and sellers. They come together and agree to buy and sell an amount of energy that is, or will be, generated by a renewable asset.
Mathieu Bonnet, Allego’s Chief Executive Officer, stated “I am pleased we have signed our first power purchase agreement for 25 gigawatt hours. Utilizing 100% renewable energy from a solar farm, Allego strengthens its mission of supplying our charging stations with 100% green electricity. Moreover, it is the first step of our execution strategy to cover at least 80% of our production in 2023 with long-term, low-cost PPAs based on renewable power assets.”
Find the press release here.