Allego, a pan-European public electric vehicle fast and ultra-fast charging network, announced a significant move to secure a stable source of renewable energy for its growing charging infrastructure.
The company has signed two power purchase agreements (PPAs) totalling 100 gigawatt hours (GWh) of energy per year with Energy Solutions Group, a major player in the green energy sector in the Benelux region.
These PPAs represent a strategic step for Allego to fortify its energy supply, mitigating the impact of fluctuating commodity prices on its operations and margins. By sourcing renewable energy from a wind farm in Strijensas, the Netherlands, and a solar park in Maarheeze, the Netherlands, the company anticipates greater control over energy costs.
Incorporating power purchase agreements into their strategy is a fundamental element of Allego’s mission to provide 100% renewable energy to its expanding EV charging network. In under a year since their first PPA, the company has already entered agreements for six renewable energy parks, demonstrating their commitment to sustainable energy.
Allego CEO Mathieu Bonnet said: “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. We secured these PPA contracts at favorable fixed prices, which in turn increases the overall attractiveness and margin of our energy procurement strategy.
“By sourcing local, green energy to our network, we expect to be able to maximize the industry-wide shift to electric mobility. These PPAs we have signed with Energy Solutions Group are tangible progress in our journey for a more sustainable future for all.”
Allego’s comprehensive approach includes not only operating an EV charging network but also procuring, monitoring, and distributing clean energy. This includes demand and supply optimization software, making Allego a charge point operator and an energy provider in one, enhancing the overall experience for EV drivers.
Amidst concerns over energy price instability, the adoption of PPAs by Allego represents a step towards ensuring a stable and renewable energy source for its EV chargers. The company aims to provide 80% of its energy through PPAs, with the remaining 20% coming from local green certificates.
The long-term PPAs with Energy Solutions Group are set to go operational by January 2024 and January 2025 for the wind and solar energy sources, respectively.
