Allego, a pan-European public electric vehicle fast and ultra-fast charging network, has signed two 10-year PPAs totaling 100 GWh of energy per year with Energy Solutions Group, an independent green energy producer in the Benelux region.
The agreements will source energy from the Netherlands, including a wind farm in Strijensas and a solar park in Maarheeze, while the PPAs are expected to be operational by January 2024 and January 2025, respectively.
The PPAs are projected to help Allego stabilize its input cost base while minimizing the impact of commodity price volatility on its operational and margin profile through renewable solar and wind energy. Allego has reduced the impact of volatile commodity prices by sourcing renewable energy to its chargers and procuring energy through PPAs.
“PPAs have proven to be an effective and competitive tool to achieve two key objectives for Allego: providing 100% renewable energy to our network and minimizing input cost volatility,” said Mathieu Bonnet, Chief Executive Officer at Allego. “We secured these PPA contracts at favorable fixed prices, which in turn increases the overall attractiveness and margin of our energy procurement strategy and we expect to be able to maximize the industry-wide shift to electric mobility by sourcing local, green energy to our network.”
Allego aims to supply 80% of its energy from PPAs and the remaining 20% through local green certificates. The company will continue to focus on sustainable mobility solutions for its EV charging station network.