Global Fashion Retailer H&M Signs PPA To Build 3 Solar Parks In Sweden

Global Fashion Retailer H&M Signs PPA To Build 3 Solar Parks In Sweden. Photo: Pexels

Global fashion retailer and fast fashion brand H&M Group has signed long-term power purchase agreements (PPAs) with European solar developer and independent power producer Alight regarding the construction of three new solar parks in Sweden.

The ground-mounted solar parks will be located in Blekinge, Södermanland, and Halland, with a capacity of 13 MW, 6 MW and 4 MW, respectively, read the company statement. The construction of the park in Blekinge is already underway, while the latter two parks will begin construction later this year.

According to Alight,  these plants will be operational by early 2025, according to the current timeline, and will provide H&M Group with renewable electricity. Once in operation, Alight will own and operate the solar parks.

Head of Green Investment of H&M Group, Ulrika Leverenz, said, “We are thrilled to have the possibility to add three new solar parks to the previous PPA we signed with Alight in 2022, getting us closer to our goal to only source renewable electricity by 2030. Renewable energy is a cornerstone of our roadmap to reduce emissions and achieve net-zero by 2040 and agreements like this one with Alight play a big part in our journey.”

These projects are touted to generate at least 24 GWh of clean electricity, which is equivalent to the annual electricity consumption of over 4,800 homes. Previously, H&M Group and Alight Group also signed a PPA in December 2022 to build a 100 MW solar park in Hultsfred, Sweden which was jointly developed and owned by French renewable energy company Neoen.

On the PPA with H&M Group, Harald Överholm, CEO and co-founder of Alight, stated, “We are honoured that H&M Group has chosen to bolster our partnership by signing PPAs to build three new solar parks in Sweden. This commitment by H&M Group makes the projects viable and adds new green power capacity to the Swedish grid. It’s a win for both corporate and community sustainability.”

In December 2022, French Renewable energy player Neoen and Alight have announced the signing of a PPA for 90 MWp of green energy in Sweden with the Swedish fashion retailer H&M Group. Under the long-term PPA, the solar park, located in Hultsfred, Sweden, will provide H&M Group with local renewable energy.

The Green Bond Issuance brought by H&M Group as a part of its forays into the sector of green finance has attracted significant investment. The group has committed $843 million under its Euro Medium Term Note (EMTN) programme.