20-Year Power Purchase Agreements
The Alliance Group—a coalition of agri-food SMEs—has been selected to purchase electricity from the planned Vigeant solar park. This 20-year agreement follows a broad consultation by Valorem, a leading energy producer, to find buyers for Power Purchase Agreements (PPAs) for its various wind and solar projects in progress.
Image: Collected
Located on land owned by Sodem, a French sheep and goat meat slaughterhouse, the Vigeant photovoltaic park will also include a sheep pasture. The park is expected to generate approximately 12.4 gigawatt-hours (GWh) annually, which will cover 15% of the Alliance Group’s energy needs.
Impacts of the PPA
Valorem partnered with the Alliance Group to secure a market for the Vigeant project, which was ineligible for CRE tenders due to its location on agricultural land. Since 1994, Valorem has financed more than 865 megawatts (MW) of renewable energy installations and now holds a development portfolio totaling 6.15 gigawatts (GW). In 2023 alone, its assets generated 1.2 terawatt-hours (TWh) of green electricity.
For its part, the Alliance Group was looking to solidify its power plans with a consistent supply of renewable electricity. The group’s energy costs are significant, especially for its plants that produce frozen and fresh items, which rely heavily on refrigeration, Solar Quarter reported.
Virginie Vivalda, the PPA market manager at Volterres, a CSR platform that supports sustainable energy transactions, notes a growing interest in PPAs and green energy solutions among mid-sized businesses across multiple industries. Volterres was instrumental in connecting Valorem and the Alliance Group, providing the expertise and support both parties needed to finalize the agreement.
Valorem 60MW Solar Power Plant
In a separate initiative, Valorem Energies Finland and the Kärkölä municipality have signed a land lease agreement to build a 60 MW solar power plant in southern Finland. The developer plans to construct the array on 80–95 hectares, including the site of a former wastewater treatment plant and its surrounding area.
Kärkölä municipality owns 29 hectares within the project’s planning zone, while the remaining land is privately owned. The park’s planned annual output is just over 40 GWh, enough to cover the annual electricity needs of about 2,000 electrically heated homes.
Negotiations with private landowners are progressing well, and a decision from the Ely Centre on the project area and the need for an Environmental Impact Assessment (EIA) is expected during 2024. Ground investigations and nature surveys will follow, allowing planning and permitting to begin in 2025.
South Finland’s Proximity to High Energy Consumption Areas
“This is an important project for us as a renewable energy producer in Finland, and we are pleased to be developing solar power in Kärkölä. Our goal is to become a solar power producer soon, and the project is well-positioned in southern Finland, where electricity demand is high and solar radiation values are favorable,” said Minna Jukola, Valorem’s country manager for Finland.
Valorem’s 20-year PPA with the Alliance Group and the development of a solar plant in southern Finland underscore its commitment to renewable energy. These initiatives reflect a broader trend toward sustainability, positioning Valorem as a key player in the transition to green energy.
