Gap signs a 90 Megawatt (MW) virtual power purchase agreement (VPPA) for the Aurora Wind Project with Enel Green Power North America.
The 12-year agreement is said to be one of the largest offsite renewable energy contracts ever signed by an apparel retailer.
The agreement will enable the company to reduce 50 per cent of its greenhouse gas (GHG) emission from its owned and operated facilities by 2020. Further, the retailer also announced its target to use 100 renewable energy across all its global facilities by 2030.
Explaining on the same, Art Peck, President and Chief Executive Officer, Gap, said “We have a responsibility to reduce our climate impact. For Gap Inc., being a part of the climate solution means making strategic investments in clean energy generation. Today we have secured a path to achieving our 2020 goal, but we must do more.”
He further added “I am proud to commit to renewable energy for 100 per cent of our stores, headquarters and distribution centres globally by 2030.”
Gap has more than 3,300 stores around the world; however, majority of them are leased and owned by landlords. This agreement will further allow Gap to aggregate its electricity load distributed in the US and also buy wind energy for over 1,500 retail stores.
The wind electricity output purchased by Gap is expected to total approximately 374 gigawatt hours (GWh) each year.
Gap was advised on this agreement by Schneider Electric Energy & Sustainability Services.“Pursuing an offsite VPPA was an ideal solution to address the company’s unique real estate footprint, which lacks owned rooftop space, and achieve its carbon reduction targets while creating both business and environmental value. We want to congratulate Gap Inc. on this important project that will contribute to a clean energy future for all,”said John Powers, VP of strategic renewables for Schneider Electric.
Enel Green Power North America is a leading owner and operator of renewable energy plant with a managed capacity of 5 GW. Enel will build, own and operate the Aurora Wind Project located in Williams and Mountrail countries in North Dakota.
Once fully done, the project will generate approximately 1.3 terawatt-hour (TWh) annually, while eliminating the emission of around 880,000 tons of CO2 per year. The project is expected to be operational by the end of 2020.
“This partnership with Gap Inc. demonstrates how global brands are increasingly turning to us for our extensive expertise in creating flexible and customised solutions that address unique renewable energy needs. With partnerships like this one, which create immediate returns while furthering emission reduction strategies, Enel Green Power once again reaffirms the strong bond between sustainability and value creation,”said Antonio Cammisecra, Global Head, Enel Green Power.
