Valorem, an energy producer, chose the Alliance Group, a coalition of agri-food SMEs, to buy electricity from the future Vigeant solar park under a 20-year agreement after consulting with potential buyers for PPAs for its wind and solar projects.
20-Year Power Purchase Agreements
Alliance Group, a coalition of agri-food SMEs, has been chosen to purchase the electricity generated by the proposed Vigeant solar park. This 20-year agreement follows an extensive evaluation process from a consultation initiated by Valorem, a leading energy producer, to find buyers for Power Purchase Agreements (PPAs) for various wind and solar projects in progress.
Image: Collected
The Vigeant photovoltaic park, located on land owned by Sodem, a French sheep and goat meat slaughterhouse, will feature a sheep pasture and is expected to generate approximately 12.4 gigawatt-hours (GWh) annually, covering 15% of the Alliance group’s energy needs.
Impacts of the PPA
Valorem chose to collaborate with the Alliance group to secure a market for the Vigeant project, which could not participate in 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 has a development portfolio totalling 6.15 gigawatts (GW). In 2023 alone, its assets generated 1.2 terawatt-hours (TWh) of green electricity.
The Alliance Group, on the other hand, sought to ensure a consistent and steady supply of renewable electricity. The group's energy costs are significant, especially for its plants that make frozen and fresh items, which rely largely on refrigeration. Solar Quarter reported.
Virginie Vivalda, the PPA market manager at Volterres, a CSR platform that supports sustainable energy transactions, observes a growing interest in PPAs and green energy solutions among mid-sized businesses across multiple industries. Volterres was instrumental in forging the relationship between Valorem and the Alliance group, giving both sides the skills and support they needed to fulfil their goals.
Valorem 60MW Solar Power Plant
Valorem Energies Finland and the Kärkölä municipality have signed a land lease agreement to establish a 60MW solar power plant in southern Finland. The developer intends 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 planning zone, while the remaining land is privately owned. The planned annual output of the park is just over 40GWh, which can supply the annual electricity needs of about 2,000 electrically-heated homes.
Negotiations with private landowners are progressing well, and by 2024, the project area and the requirement for an Environmental Impact Assessment (EIA) are expected to be secured from the Ely Centre. Subsequently, ground investigations and nature surveys will be conducted, allowing planning and permitting to begin in 2025.
South Finland’s Proximity to High Energy Consumption Areas
Valorem’s country manager for Finland, Minna Jukola, emphasized the significance of this project for the company as a renewable energy producer in Finland and expressed their satisfaction in developing solar power in Kärkölä. She highlighted their aim to soon become a solar power producer, noting that the project's location in southern Finland is advantageous due to its proximity to high electricity consumption areas and favorable solar radiation levels.
"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," said Jukola.
"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." She concluded.
Valorem's 20-year PPA with the Alliance Group for the Vigeant solar park and the development of a solar power plant in southern Finland underscore its commitment to renewable energy. These initiatives reflect a broader trend towards sustainability, with Valorem playing a pivotal role in driving the transition to green energy.