Leading pan-European EV charging network, Allego (ALLG) announced Monday that it has signed two power purchase agreements (PPAs) totaling 100 gigawatt hours (GWh) of energy per year with Energy Solutions Group, the largest independent green energy producer in the Benelux region.
Allego is expected to use these PPAs to stabilize its input cost base, reducing the influence of commodity price fluctuations on its operational and margin profile. This will occur as it gains renewable solar and wind energy.
PPAs are also another way to reinforce Allego's efforts in its mission to provide 100% renewable energy to its growing EV charging network.
“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.” Said CEO, Mathieu Bonnet.
“We secured these PPA contracts at favorable fixed prices, which in turn increases the overall attractiveness and margin of our energy procurement strategy.” Added Bonnet.
Energy Solutions Group has secured long-term agreements to acquire energy from a wind farm in Strijensas, the Netherlands, and a solar park in Maarheeze, the Netherlands. These agreements are projected to become operational in January 2024 and January 2025, respectively.
Shares of ALLG are down 1.34% in afternoon trading on Monday.