Nestle to buy solar power from BKW in Germany

Swiss utility BKW Energie AG said on Thursday that it has reached a deal to supply the German arm of Swiss food giant Nestle SA (SWX:NESN) with solar power, starting from July 2024.

The electricity will be generated by photovoltaic systems in Germany, the Swiss utility said in a press release.

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Thanks to power purchase agreements (PPA) with BKW and other energy suppliers, Nestle Deutschland will source 80 GWh of electricity per year from German wind farms and solar facilities by the end of 2026.

The power will be sufficient to meet 70% of the needs of Nestle’s German plants, which require about 113 GWh per year. To cover the remaining 30%, the food company will invest in new renewable energy systems and purchase guarantees of origin.

Nestle's German unit previously reached a deal to purchase wind power from energy trader Axpo Holding AG.

The measures are part of Nestle’s global efforts to lower its electricity consumption and meet its remaining power needs exclusively with renewable energies by 2025.

Overall, Nestle aims to cut by half its greenhouse gas emissions worldwide by 2030 and reach net-zero emissions by 2050.