Apparel Brand Gap Signs 90 MW VPPA With Enel Green Power

Gap has signed a 90 MW VPPA for the Aurora Wind Project with Enel Green Power, marking one of the largest offsite RE contracts by an apparel retailer.

Global apparel retailer Gap Inc. has announced that it has signed a 90 MW virtual power purchase agreement (VPPA) for the Aurora Wind Project with Enel Green Power North America, marking one of the largest offsite renewable energy contracts by an apparel retailer.

The 12-year agreement is the firms’ latest renewable energy deal and will enable the company to reach its 2020 goal to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions for its owned and operated facilities by 50 percent compared to 2015. The company also announced it has set a goal to reach 100 percent renewable energy across its global owned and operated facilities by 2030.

Art Peck, president and chief executive officer, Gap Inc said that they have had a responsibility to reduce their climate impact. And that for Gap Inc., being a part of the climate solution means making strategic investments in clean energy generation.

“We have secured a path to achieving our 2020 goal, but we must do more. I’m proud to commit to renewable energy for 100 percent of our stores, headquarters and distribution centres globally by 2030.”

The agreement with Enel Green Power allows Gap Inc. to meet its renewable energy goal by aggregating its distributed electricity load in the U.S. and purchasing wind energy equivalent to the energy needs of over 1,500 retail stores in its global real estate portfolio. The agreement provides benefits both to the local grid by adding new clean generation, while also stabilizing operating costs for Gap Inc. in the face of fluctuating energy prices.

The wind electricity output purchased by Gap Inc. from the 90 MW portion of Enel Green Power’s 299 MW Aurora project is expected to total approximately 374 gigawatt hours (GWh) each year. It will reduce GHG emissions equivalent to the carbon reduction of removing 60,000 passenger cars from the road annually.

Gap was advised on this VPPA by Schneider Electric Energy & Sustainability Services, who assisted the company in its project selection and negotiations. “Gap Inc. has shown tremendous and ongoing sustainability leadership in the apparel industry,” said John Powers, VP of Strategic Renewables for Schneider Electric. “Pursuing an offsite VPPA was an ideal solution to address the company’s unique real estate footprint, which lacks owned rooftop space, and achieve its carbon reduction targets while creating both business and environmental value. We want to congratulate Gap Inc. on this important project that will contribute to a clean energy future for all.”

Enel Green Power North America will build, own, and operate the Aurora Wind Project located in Williams and Mountrail counties in North Dakota. Once completed, the total project will be able to generate approximately 1.3 terawatt-hour (TWh) annually, while avoiding the emissions of around 880,000 tons of CO2 per year. The project is expected to enter operation by the end of 2020.

“This partnership with Gap Inc. demonstrates how global brands are increasingly turning to us for our extensive expertise in creating flexible and customised solutions that address unique renewable energy needs,” said Antonio Cammisecra, Global Head of Enel Green Power. “With partnerships like this one, which create immediate returns while furthering emission reduction strategies, Enel Green Power once again reaffirms the strong bond between sustainability and value creation.”