Octopus Energy signs solar PPA with UK retailer Iceland Foods

Britain’s Octopus Energy on Friday said its generation arm has signed a 10-year power purchase agreement (PPA) with UK frozen food retailer Iceland Foods.

Under the agreement, Iceland Foods will receive about 64 GWh a year from the 67-MW Breach solar farm project in Cambridgeshire, which is managed by Octopus on behalf of Octopus Renewables Infrastructure Trust (ORIT).

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The solar energy will power 150 sites, out of the almost 1,000 stores Iceland Foods has in the UK, delivering 14% of the electricity the retailer uses for its UK stores.

Iceland Foods chief executive Tarsem Dhaliwal said the contract will contribute to the company’s 2040 net zero goal and will also provide clarity on energy costs for the coming years “at a significant discount to the current wholesale price.”

Octopus Energy Generation acquired the Breach solar farm on behalf of ORIT last year. Construction of the project started in November 2022, with completion expected in the fourth quarter of 2023.