Ahold Delhaize Signs Power Purchase Agreement
Living up to its reputation as one of the greenest grocers on the planet, Ahold Delhaize has signed a virtual power purchase agreement (VPPA) with the Spanish renewable energy company BRUC to support the financing and construction of five solar power plants in Seville, Spain. This corresponds to about 30% of Ahold Delhaize’s total electricity usage in its European operations. The project represents a key step within Ahold Delhaize’s Renewable Energy Program, and contributes to the retail conglomerate’s wider 2040 strategy to achieve net-zero scope 1 and 2 carbon emissions across its own operations.
Construction on the plants is expected to begin before the end of the year, with energy generation to start in 2026. This project will add 515 gigawatt-hours per year of new solar energy capacity to the grid, equivalent to the annual electricity usage of 132,000 households. Ahold Delhaize will contract about 90% of the cluster’s installed capacity and receive guarantees of origin (renewable energy certificates) for a period of 15 years.
“We are thrilled about the signing of this VPPA and the development of the solar plants in Seville, Spain,” noted Frank Sluis, CFO of Ahold Delhaize Europe & Indonesia. “It marks a significant step in our Renewable Energy Program, aimed at enhancing energy efficiency, generating our own renewable energy and sourcing green energy. It underscores our ambition to achieve our 2040 scope 1 and 2 net-zero commitment. All of our great local brands in Europe are on a clear path to delivering on our climate agenda.”
Added Paulette van Ommen, director Health and Sustainability at Ahold Delhaize Europe & Indonesia: “With this commitment, we will add new renewable electricity to the European grid. This solar project is a shining example of how we bring our Growing Together purpose and strategy to life and shows how we can leverage our scale to launch an impactful initiative across European brands.”
When Ahold Delhaize embarked on its net-zero journey, electricity was its largest source of scope 1 and 2 emissions. To date, the Renewable Energy Program has reduced emissions from electric energy in its European operations by two-thirds. The Seville project will further support the company’s scope 1 and 2 net-zero agenda, according to which it plans to reduce electricity emissions to zero by 2035.
Under its Renewable Energy Program, Ahold Delhaize first looks at lowering energy usage by implementing energy efficiency measures across all its local brands. Further, it aims to generate as much green energy itself as possible through such methods as installing solar panels on the roofs of stores, distribution centers and offices. Finally, it aims to sustainably source the remainder of its electricity consumption through PPAs.
In December 2023, Dutch Ahold Delhaize brand Albert Heijn revealed a direct PPA with Eneco for the construction of the Ecowende wind park in the North Sea.
In the United States, Ahold Delhaize’s recent sustainability measures have included teaming with General Mills to support farmers adopting regenerative farming practices, partnering with Kellanova and North American agribusiness Bartlett to reduce scope 3 greenhouse-gas (GHG) emissions from wheat farming and helping to decarbonize the shrimp supply chain.
Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize, is No. 11 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named the company one of its Retailers of the Century and one of its 10 Most Sustainable Grocers.
