The French energy company EDF announced on Tuesday February 21 that it had concluded a contract to supply a quarter of the electricity consumption of the cosmetics group L'Oréal in France for 15 years from two photovoltaic power plants.
“These direct purchase contracts for electricity from renewable sources relate to the supply for 15 years of the entire production of two solar power plants to be built and operated by EDF Renouvelables,” the EDF group said in a press release.
These long-term electricity supply contracts are referred to as "corporate PPA" (power purchase agreement).
They will allow L'Oréal to "benefit from a controlled purchase price over the long term", and thus avoid being exposed to price volatility.
Planned in Corrèze and in the Vosges, and with a cumulative installed power of 27 megawatt-peak, these two solar power plants will produce the equivalent of 25% of the L'Oréal Group's electricity consumption in France, EDF said.
Their entry into service is expected respectively by the third quarter of 2024 for the first and the second quarter of 2025 for the second.
"The production of our two future solar power plants will be added to that of another wind farm in operation which has been supplying electricity for L'Oréal's sites for two years already", explained Alexandre Levy, Director of PPA in France at EDF Renewables, quoted in the press release.
The partnership is backed by a supply contract which provides that the firm volume of electricity produced will be sold by Agregio, a subsidiary of EDF, to the L'Oréal group.
EDF is also renewing the L'Oréal Group's electricity supply contract, integrating the volume of solar electricity as well as additional coverage with electricity from renewable sources, for the years 2024 and 2025.
This commitment "is in line with our commitments made within the framework of the L'Oréal for the Future program in order to sustainably consume renewable energy for all of our activities", commented Audrey Izard, Group Indirect Purchasing Director L'Oreal.
"The simultaneous signing of these production, aggregation and supply contracts to build this solar PPA is a first for the EDF group", according to Stanislas Landry, EDF's key accounts director.
