Co-op has entered a seven-year power purchase agreement to utilise energy generated from a wind farm located off the coast of north Wales.
The convenience retailer was working in partnership with German electricity provider RWE to increase the amount of renewable energy it procured for security and to accelerate its path towards decarbonisation, it said.
Under the new agreement, Co-op will source electricity produced from the Gwynt y Môr offshore wind farm to help power its estate, including food stores, distribution centres and funeralcare homes across the UK.
RWE will supply Co-op with a total volume of 33 gigawatt hours (GWh) of clean electricity annually – enough to power the equivalent of around 140 Co-op food stores a year, equal to 12,200 homes, according to Co-op.
“At Co-op we’re delighted to announce this further power purchase agreement signing, as we continue to strengthen our energy purchasing strategy by making impactful changes across our business,” said Co-op group property and sustainability director Heather Thomas.
“For the sake of people and planet, it’s vital that collectively we tackle the climate crisis. The energy transition is central to energy security and therefore national security too.
“That’s why we believe that every business should be playing its part to help green the grid, be that by reducing their energy demand or indeed by ensuring that renewable electricity generation forms an integral part of their energy procurement decisions.”
Olaf Lubenow, head of commodity solutions for UK and north & south Europe at RWE Supply & Trading, said: “This contract will help Co-op to meet an increasing proportion of its energy needs from renewable sources. We are seeing continued growth in interest in sustainable energy solutions in the UK retail sector.”
The new agreement follows a raft of other sustainability-focused initiatives by Co-op. These include the completion of a landmark solar panel project at Co-op’s largest depot in Biggleswade, Bedfordshire, and plans to install solar panels on up to 700 sites across its food, funeralcare and logistic portfolio over the next three years.
Co-op chief procurement officer Imran Rasul said: “We’re leveraging Co-op’s expertise as a major energy user in our own right to aid businesses with their own energy procurement strategies to find better ways of sourcing, buying and managing energy.
“We have a wealth of knowledge in this sector and are committed to sharing our insights to help businesses save money and source energy in a sustainable and ethical way.”
Co-op has committed to reaching net zero across its operations by 2035 and entire business by 2040. In March 2024, Co-op became one of the first UK convenience retailers to have its net zero targets validated by the globally recognised Science Based Targets initiative.
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