AXA inks 10-year deal for development of renewables in Europe

Contract involves a solar power plant in Spain, with the objective of being operational by May 2025

AXA inks 10-year deal for development of renewables in Europe

Insurance News

By Kenneth Araullo

AXA has announced that it has signed a 10-year virtual power purchase agreement (VPPA) with IGNIS, a renewable energy group in Spain.

A VPPA makes it possible for both parties to contribute to the equivalent of all or part of a consumer’s energy needs, as well as supply the grid with renewable electricity. This contract also involves a solar power plant in Andalusia, Spain, which will begin construction shortly. It is targeted to be operational by May 2025.

Under the VPPA, AXA commits to purchasing 90% of the renewable energy produced by this future power plant, or 84 GWh per year. This is in line with the electricity consumption of buildings and data centres of AXA’s European entities.

“The energy consumption of our buildings and the digital sector currently account for the largest share of the carbon footprint associated with our own operations,” said Alexander Vollert, group chief operating officer for AXA GO. “The environmental impact of this contract will be significant, as 75% of the electricity consumed by the group's buildings and data centres is located in Europe. By signing a VPPA on this scale, AXA is confirming its climate ambitions by decarbonizing, among other things, its activities in these areas.”

This new commitment by the insurer follows the outlining of its new decarbonization targets, as well as the release of its climate and biodiversity report in 2023.

What are your thoughts on this story? Please feel free to share your comments below.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!