Gap Inc. in big renewable energy deal
Gap Inc. has entered into one of the largest offsite renewable energy contracts by an apparel retailer to date — one that addresses the specific needs of its leased sites.
Gap has signed a 90 megawatt (MW) virtual power purchase agreement for the Aurora Wind Project with Enel Green Power North America. The 12-year agreement will enable the company to reach its 2020 goal to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions for its owned and operated facilities by 50% compared to 2015.
The retailer also announced it has set a goal to reach 100% renewable energy across its global owned and operated facilities by 2030.
“We have a responsibility to reduce our climate impact,” said Art Peck, president and CEO, Gap Inc. “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. I’m proud to commit to renewable energy for 100 percent of our stores, headquarters and distribution centers globally by 2030,”
Gap Inc. operates more than 3,300 stores worldwide, with the vast majority of its fleet being leased sites located in buildings and malls owned by landlords, limiting the company’s ability to implement onsite renewable energy assets. The agreement with Enel Green Power allows the retailer to meet its renewable energy goal by aggregating its distributed electricity load in the U.S. and purchasing wind energy equivalent to the energy needs of over 1,500 retail stores in its global real estate portfolio. The agreement provides benefits both to the local grid by adding new clean generation, while also stabilizing operating costs for Gap Inc. in the face of fluctuating energy prices.
The wind electricity output purchased by Gap Inc. from the 90 MW portion of Enel Green Power’s 299 MW Aurora project is expected to total approximately 374 gigawatt hours (GWh) each year. It will reduce GHG emissions equivalent to the carbon reduction of removing 60,000 passenger cars from the road annually.
Gap Inc. was advised on the agreement by Schneider Electric Energy & Sustainability Services, who assisted the company in its project selection and negotiations.
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