Better Energy inks 10-year solar PPA with Danish dairy group Arla

Danish dairy products maker Arla Foods will procure green power from solar parks that will be built by compatriot Better Energy A/S in Denmark.

Arla has signed a 10-year power purchase agreement (PPA) with the renewables developer covering most of the output of four solar photovoltaic (PV) parks. The capacity will be installed without using any subsidies and is expected to produce 250 GWh per year, Better Energy said on Monday.

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The arrangement will cover a third of Arla’s electricity consumption in Denmark from 2024. The deal backs the dairy company’s plan to go all-renewable in Europe by the end of 2025 and achieve a 63% carbon dioxide (CO2) reduction by 2030. Arla plans to reach the 100% renewables goal mainly through green PPAs and investment in wind and solar projects.

The four solar parks are expected to be fully operational at the start of 2024, with first power to be produced from early 2023. The plants will be built, owned and maintained by Better Energy. While one of them will be installed in Assens Municipality, the location of the remaining three parks is yet to be approved.

According to Better Energy, the PPA is the largest one in Denmark for subsidy-free green power.