- This marks the first multi-buyer CPPA in Ireland
- This CPPA will meet 50% of Medtronic’s electric annual requirements for our Ireland sites
- The renewable electricity is to be sourced locally from a Windfarm situated just 30 minutes from Medtronic
- This deal addresses the operational carbon scope 2 emissions of Medtronic’s electricity consumption with an identifiable wind farm and is a vital part of Medtronic’s published decarbonisation roadmap2
22 May 2023 Medtronic has signed a Corporate Power Purchase Agreement with Flogas Enterprise, the division of Flogas that works with industrial and commercial customers and renewable energy producers. A Corporate Power Purchase Agreement, or CPPA, is a contract whereby a company procures renewable electricity through a direct agreement with a renewable electricity developer. This marks the first multi-buyer CPPA in Ireland.
The new CPPA was completed with Shane Cannon and his energy management team at Medtronic along with the support of Medtronic’s energy management consultant, NUS Consulting Group. It will meet 50% of Medtronic’s annual electricity requirement for its Ireland sites and support its sustainability ambitions. The renewable electricity will be sourced locally from a Windfarm just 30 minutes from Medtronic. Guarantees of Origin (GoOs) realised from the arrangement will be retired in Medtronic’s name to support its scope 2 emissions reporting.
Demand for renewable CPPAs will grow rapidly in Ireland over the next few years as companies look to reduce their carbon footprint and seek budget certainty given the last 12 months of extremely volatile energy prices. CPPAs are typically signed over long periods, guaranteeing both the renewable generator and corporate consumers a fixed electricity price and hedging against market risks. Flogas Enterprise identified the buyers and sellers and brought all parties together to develop a CPPA structure that works for all. The customers were bundled by Flogas Enterprise, meaning they could partner with a wind farm they otherwise could not have partnered with due to scale.
Sam Osborne of Flogas Enterprise spoke of the announcement: “At Flogas Enterprise, we are strategically focused on bringing our customers to the market as buyers of renewable power. We have over 10 years of experience in the Irish renewables market, which means we can identify and deliver relevant renewable opportunities for our customers that will best suit their sustainable requirements. We are pleased to announce this new CPPA with Medtronic and look forward to working in tandem with them and supporting them on their sustainability journey”.
Anita Tuch, Vice President, Facilities, Risk and Environmental Health and Safety at Medtronic, said: “We look forward to working with Flogas Enterprise. Renewable electricity is a vital pillar in our commitment to sustainability, and this momentous occasion marks a significant milestone. The guarantees of origin realised from the arrangement will also be utilised to support our Scope 2 emissions reporting”.
Sarah Turner, Senior Project Manager at NUS Consulting Group, said: “Extreme price volatility in European markets has led many organisations to consider alternative purchasing options, including Corporate Power Purchase Agreements that offer price stability while supporting corporate sustainability initiatives. NUS Consulting Group is pleased to support Medtronic on this initiative and is developing similar opportunities for clients elsewhere in Europe and around the globe”.
James Temple, Renewables Manager at Flogas Enterprise, said: “We are delighted to support our valued customers by providing them access to the renewable market as a buyer of renewable power. We have defined a CPPA structure that seamlessly connects our corporate energy customers and renewable energy off-take business. There are several options for corporates to secure a CPPA; this CPPA with Medtronic is a Physical Sleeved CPPA. CPPAs provide green energy to our customers while diversifying renewable developers’ route to market options.”
Flogas Enterprise is a leading supplier in the market bringing CPPA options to customers and can offer expert advice and help to businesses who want to make the switch. To speak with one of their expert advisors, call 01 884 9400 or email email@example.com.
For more information on Flogas Enterprise, see: https://flogasenterprise.ie/