Energi Danmark has signed an agreement for the construction of a new solar park that will supply the GN Group and 11 other companies. This power purchase agreement allows more companies to join in and contribute to the green transition. Thanks to these agreements, consumers are actively involved in promoting the use of renewable energies. Thanks to this agreement, GN Group and 11 other companies join forces and pool their electricity demand.
The power purchase agreement marks an important step towards one of the company’s sustainability goals for 2025: to be climate neutral in its operations (which means reducing “Scope 1 and Scope 2” carbon emissions to zero). Achieving this goal means changing the way it powers its spaces by switching to renewable energy through these types of agreements. Over the coming years, the GN Group will develop similar solutions, initially focusing on manufacturing sites.
Being an example on the road to green transition
In 2021, GN Group and the other 11 companies have delegated Energi Danmark and empowered it to enter into an agreement with a new renewable energy development company, Better Energy, regarding the construction of a solar park in Northen Jutland. The project meets all the requirements in terms of location, commissioning date and price. Better Energy, responsible for the construction of the solar plant, is also pleased with the agreement.
“Businesses can make a big difference in the ecological transition by demanding clean energy. By pooling their electricity demand, these 12 different companies are setting an example with their commitment. Their combined demand for new and additional renewable energy is what is needed to meet climate goals,” says Peter Munck Soe-Jensen, Executive Vice President of Power Solutions at Better Energy.
GN to make a lasting impact – and save costs
With this agreement, GN and the 11 other companies participating in the agreement have delegated Energi Danmark to achieve their goals. This means that Energi Danmark will take care of the entire installation, i.e., contact with the project developer, electricity supply and risk management. As a result, the participating companies get a simple and clear agreement based on their actual consumption, as Energi Danmark also manages the balance between consumption and production.
David Wenblom, GN’s supply manager, says: “This initiative is a great example of how GN can make a real and lasting impact on environmental sustainability and, at the same time, make significant cost savings. By signing this long-term power purchase agreement, GN secures a price per kWh 50% below the average selling price in 2021. The price of the agreement is fixed for a period of 10 years, which gives GN financial peace of mind in today’s volatile energy market with dramatic price increases”.
The solar park is expected to be ready in the first quarter of 2023
The location of the new solar park is pending final approval. It is expected to be completed in the first quarter of 2023 and is expected to produce approximately 70,000 MWh per year to power the 12 participating companies with renewable energy, including GN Group’s Ballerup and Praesto sites, which is equivalent to the electricity consumption of approximately 18,000 households.