Neoen, Alight clinch 90-MWp Swedish solar PPA with H&M

French renewable power producer Neoen SA (EPA:NEOEN) and Swedish solar developer Alight will build a 90-MWp solar park in southeastern Sweden to supply domestic clothing retailer Hennes & Mauritz AB (STO:HM-B), or H&M.

The companies have long-term signed a power purchase agreement (PPA) that will see H&M procure electricity and receive associated guarantees of origin, Neoen said on Tuesday.

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The Hultsfred solar project, which will have a capacity of at least 90 MWp, was developed jointly by Neoen and Alight and is majority owned by the French firm. The two companies expect to kick off construction in the second half of 2023 and bring the plant online in 2025.

Once up and running, the PV farm located near the runway of Hultsfred airport is expected to generate power equal to the annual electricity consumption of more than 16,000 homes.

The power off-take deal is the largest PPA for solar power generation in Sweden to date, according to Neoen. The agreement aligns with H&M Group’s goal to cut its absolute Scope 1 and 2 emissions and Scope 3 emissions by 56% by 2030. The fashion group is also seeking to source 100% of its power from renewables by the same year.