Case study
Background
As part of our commitment to reducing our climate impact, we aim to power all our own operations using renewable electricity by 2030 and to source at least 50% of this energy through power purchase agreements (PPAs) for new renewable electricity generation. This way we increase renewable electricity supply to grids in markets where we operate.
Details
In 2022/3 we entered into four PPAs in Sweden:
- In 2022, we signed an agreement with Alight and Neoen for a solar park at Hultsfred airport in the south of Sweden. Rows of low-carbon photovoltaic panels will cover the unused land surrounding the runways. With a capacity of 100MWp, it will be the largest solar park in Sweden to date (October 2024).
- In 2023, we signed an additional agreement with Alight for three smaller solar parks in Sweden in Blekinge, Södermanland and Halland, with a total capacity of 23 MW.
Outcomes
All four parks will become operational in 2025 and are expected to provide H&M Group with 124 GWh of renewable electricity per year from 2026. This is equivalent to the annual electricity consumption of 24,800 homes (based on 5,000 kWh per household).
About our PPAs
By signing PPAs, we are agreeing to purchase renewable electricity generated by solar parks or windfarms that are yet to be built. The developers get a guaranteed income, more renewable energy is generated and we get one step closer to our renewable electricity goals. Our PPAs are funded through our green investments.
