Tesco signs landmark solar power agreement for UK operations

Tesco has signed the largest corporate Power Purchase Agreement (PPA) in the UK, securing renewable energy from the Cleve Hill solar park in Faversham, Kent. This agreement, facilitated by EDF, will provide Tesco with 65% of the solar power generated at the site, which is expected to supply up to 10% of the retailer’s electricity demand in the UK.

The Cleve Hill solar park, currently under construction and set to become operational in early 2025, will have a capacity of 373 megawatts (MW) and will feature more than 560,000 solar panels. Once operational, the project is projected to generate enough clean energy to power 144 large Tesco stores for a year.

Spanning 15 years, the PPA is said to be the largest corporate solar PPA ever agreed upon in the UK. This partnership is part of Tesco’s broader strategy to achieve carbon neutrality across its operations by 2035. The retailer has previously announced multiple energy projects aimed at sourcing green electricity from various wind farms and solar parks across the country.

The Cleve Hill project is classified as a Nationally Significant Infrastructure Project (NSIP), underscoring its importance to the UK’s energy strategy and the transition to renewable sources. As of the first quarter of 2023, renewable energy accounted for 48% of all electricity generated in the UK, indicating a growing shift towards sustainable energy solutions.

Through this partnership with Quinbrook Infrastructure Partners and EDF, Tesco aims to bridge the investment and infrastructure gap necessary to meet the UK’s net zero targets. The agreement will enable Tesco to cover 45% of its UK electricity needs and 36% of its overall electricity demand by 2030.

Ken Murphy – group chief executive of Tesco, says:

“Cleve Hill solar park, with its ability to generate up to 10% of our UK electricity demand, joins a number of other Power Purchase Agreements we’ve announced over the last five years. With its ability to provide vital energy storage infrastructure, it’s a key part of the renewable energy strategy in the UK, and further evidence of our commitment to tackle climate change and source green electricity from innovative projects like this.”

Image credit: Tesco