Statkraft and Telenor sign agreement for the supply of renewable energy for Telenor’s Finnish subsidiary DNA
Telenor have signed a 10-year Power Purchase Agreement (PPA) with Statkraft. The agreement ensures that around 80% of the purchased power for Telenor’s Finnish subsidiary DNA, comes from a new wind farm to be built in Finland.
The Palokangas wind farm is owned by Exilion Tuuli and starts its operations late 2024. Exilion Tuuli is an investment company owned by Finnish institutions. Statkraft’s role is to match the needs of both DNA and Exilion, providing financial security for the wind farm owner, while enabling a predictable renewable energy supply for the telecommunications company.
“Telenor wants to support the construction of new renewable power plants in the markets we operate, and this agreement provides a solid contribution to the decarbonization of the electricity supply, as well as new capacity to hedge against volatile energy prices,” says Jannicke Hilland, Executive Vice President for Telenor Infrastructure at Telenor Group.
Telenor has previously signed similar agreements for the Norwegian and Danish operations, a vital part of the company’s target-based approach to reduce emissions.
“Telenor Group’s scope 1 and 2 science-based climate target commits us to reduce global greenhouse gas emissions by 57% from 2019 to 2030. We also have a scope 3 enablement target where we recently made it mandatory for our suppliers to set their own science-based targets. Purchasing renewable energy is one the most significant measures we can take to reach our scope 1 and 2 targets,” Hilland ends.
A total volume of 85 GWh will be supplied to DNA annually through this agreement. The Palokangas wind park will consist of 12 turbines and be built in the Ostrobothnia region.
“With this agreement, we support DNA in securing their energy needs as well as achieving their climate targets based on renewable energy from a new wind farm under development in Finland. It illustrates Statkraft’s role in the market where we match the needs of power producers and consumers to find profitable, risk-reducing, and sustainable solutions,” says Arne Wist, Vice President Nordic Origination at Statkraft.