Netherlands-based international food retailer Ahold Delhaize said that it has entered into a Virtual Power Purchase Agreement (VPPA) with Spanish renewable energy company Bruc, supporting the financing and construction of a cluster of five solar power plants in Seville, Spain.

Supplying 460 GWh of power per year, the VPPA will cover approximately 30% of Ahold Delhaize’s total electricity demands in its European operations, contributing to the company’s climate goals, including its target to reach net-zero carbon emissions in its operations no later than 2040.

Frank Sluis, CFO of Ahold Delhaize Europe and Indonesia, said:

“We are thrilled about the signing of this VPPA and the development of the solar plants in Seville, Spain. 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.”

Construction on the new projects is anticipated to begin this year, with energy generation to commence in 2026. The projects are expected to add 515 GWh per year of new solar energy capacity to the grid, with Ahold Delhaize contracting approximately 90% of the installed capacity, and receiving renewable energy certificates for 15 years under the new agreement.

Luis Venero, CEO of BRUC, said:

“This agreement, along with other (V)PPAs signed this year and those planned in the coming years, supports our portfolio of over 9 GW. We are proud to partner with Ahold Delhaize and jointly demonstrate our commitment to sustainable energy growth.”

Ahold Delhaize said that before embarking on its efforts to achieve net zero, electricity was its largest source of its scope 1 direct and scope 2 indirect emissions; its

Renewable Energy Program has reduced emissions from electric energy in its European operations by two-thirds. The company plans to reduce electricity emissions to zero by 2035. Among the efforts to reduce emissions is the utilization of new heat pumps, new refrigeration systems, LED lighting, heat recuperation and improved insulation.