TotalEnergies Signs Renewable Electricity Supply Agreement with Saint-Gobain

By Global Infrastructure Sherpa · Oct 8, 2024

Ppa Renewable signed France Oct 8, 2024

875 GWh

Capacity

TotalEnergies has signed a Power Purchase Agreement (PPA) with Saint-Gobain to supply renewable electricity to Saint-Gobain's French facilities. The agreement will take effect from January 2026 for a total volume of 875 GWh over a period of five years. TotalEnergies will provide Saint-Gobain with a baseload supply of electricity and guarantees of origin for that amount of power, produced by TotalEnergies' wind and solar plants in France.

Deal Analysis

TotalEnergies and Saint-Gobain have signed a Power Purchase Agreement (PPA) for the supply of 875 GWh of renewable electricity over five years, commencing in January 2026. TotalEnergies will provide Saint-Gobain's French facilities with a baseload supply of electricity sourced from its wind and solar plants located in France, along with guarantees of origin. This agreement underscores the growing trend of large corporations securing long-term renewable energy supplies to meet sustainability targets and reduce their carbon footprint. The deal is notable for its scale, involving a substantial volume of renewable energy and two major players in their respective industries. TotalEnergies, a global multi-energy company, is expanding its renewable energy portfolio, while Saint-Gobain, a multinational corporation focused on construction materials, is demonstrating its commitment to sustainable operations. This PPA provides TotalEnergies with a stable revenue stream for its renewable energy assets and allows Saint-Gobain to secure a reliable supply of green electricity, contributing to its environmental goals.

Large-scale PPA: 875 GWh over 5 years.
Involves major players: TotalEnergies as the renewable energy provider and Saint-Gobain as the offtaker.
Supports Saint-Gobain's sustainability goals by providing renewable electricity for its French facilities.
Provides TotalEnergies with a long-term revenue stream for its wind and solar assets in France.

Market Context: The renewable energy sector in Europe, particularly in France, is experiencing significant growth driven by government policies, corporate sustainability initiatives, and decreasing costs of renewable energy technologies. PPAs are becoming increasingly common as a mechanism for companies to secure long-term renewable energy supplies and support the development of new renewable energy projects.