Signify signs VPPA with Green Investment Group

• Signify signs its first European renewable energy virtual power purchase agreement (VPPA) in a 10-year deal with Green Investment Group’s (GIGs) Kisielice onshore wind farm in Poland
• Signify’s Polish facilities are responsible for more than 25 per cent of its global electricity footprint
• The VPPA marks a major milestone in Signify’s commitment to become carbon neutral in 2020

For the next ten years, Signify, the world leader in lighting, will purchase renewable energy for its operations in Poland from the Green Investment Group’s (GIG) Kisielice onshore wind farm.

Kisielice wind farm is a 42-megawatt (MW) project located 200 kilometres north of Warsaw, and was acquired by GIG in August. It has been operational since 2014 and consists of 21 Enercon E82 turbines. The wind power sourced under the VPPA will be applied to power four of Signify’s factories and several offices throughout Poland. The VPPA helps Signify reduce its annual carbon footprint by 73 kt CO2e pa – the equivalent of removing over 23,000 cars from the road.

"This VPPA is a major milestone on our journey to become carbon neutral in 2020. It's crucial for our transition to 100 per cent renewable electricity next year, as well as supporting Poland’s energy transition."

Nicola Kimm
Head of Sustainability, Environment, Health & Safety at Signify

Signify pursued renewable electricity in Poland as its operations there are responsible for more than 25 per cent of the company’s global electricity footprint. As 80 per cent of electricity in Poland is currently generated from coal, this renewable energy agreement is significant in decarbonising Signify’s operations in the country. Renewable PPAs will play a role in supporting Poland to reach its 2030 country goal that 21 per cent of overall energy consumed will be from renewable sources.

This agreement, which is Signify’s first VPPA in Europe, is the result of a competitive tender process. GIG was selected because of its depth of experience in the PPA market. GIG has now structured and executed PPAs for nearly one GW of renewable energy capacity across Europe.

"More and more firms, like Signify, are setting clear carbon-reduction targets – which is boosting demand for renewable power. We have a well-established track record in financing and delivering these kinds of PPAs and are delighted to have worked with Signify on our first such project in Poland."

Edward Northam
Head of GIG Europe

Schneider Electric Energy & Sustainability Services (ESS) was an advisor to Signify on the process of identifying and selecting the project.

"Signify is demonstrating significant leadership with this VPPA. It’s the first publicly announced VPPA in Poland supporting renewables in a market dominated by fossil fuels. We congratulate Signify for their steadfast commitment to carbon reduction and a renewable energy future."

Philippe Diez
Vice President EMEA for the ESS division

Corporate VPPAs are increasingly popular in Europe to reduce carbon emissions. They also play a critical role in accelerating the growth of renewables in markets where there’s little to no subsidy provided. Under this approach, the renewable power is sold onto the grid with the business user providing a guaranteed strike price – providing income stability for the renewable project while guaranteeing clean energy benefits for the corporate buyer.

GIG Carbon Score for this project

GIG’s Carbon Score is a measure of a project’s lifecycle greenhouse gas emissions compared to the emissions of the baseline that it displaces. Projects with the lowest lifecycle emissions relative to the baseline would score the highest ratings from AAA to B. Projects with lifecycle emissions similar to the baseline would score a C, and projects with greater emissions would score a D or E.

For further information on how we assess the green impact of our investments, please see our impact and measurement.