Alina Oprea • 25 August, 2023 at 2:11 PM
The Orange Romania group signed with Engie Romania the first vPPA (virtual Power Purchase Agreement) contract, which consists of the virtual purchase of long-term renewable energy. The agreement underlines Orange's commitment to reach the #NetZeroCarbon objective by 2040. Through this contract, signed for a period of 6 years, Orange in Romania will cover 30 GWh of its annual electricity needs with green energy from solar technology.
The Orange Romania Group companies that are part of the contract are Orange Romania, Orange Romania Communications, and NextGen Communications.
"In addition to continuing the implementation of initiatives that support sustainability objectives, cost efficiency and ensuring a percentage of energy from renewable sources are additional measures that Orange took into account when rethinking the way it consumes energy. By signing the vPPA contract, Orange and Engie Romania have partnered in a joint project that supports Orange companies in Romania in achieving carbon neutrality by 2040, the target set by the Orange Group's strategic plan - Lead the Future", announces the company.
Through this initiative, Romania joins the other countries in the European7 perimeter, where, in 2023, Orange has ensured a solid volume of 80% of green energy (Spain, Belgium, Luxembourg, Slovakia, Poland, Romania, Moldova).
"We are aligned with the objectives of the Orange Group and continue to integrate sustainability at the heart of our actions, in order to reduce our impact on the environment. Decarbonization and the use of more renewable and sustainable energy sources is a priority for us, along with using resources efficiently through reuse and recycling. Thus, the signing of the vPPA contract with Engie Romania is another important step in the long-term commitment that Orange has assumed, to contribute to the sustainable development of society. This approach involved a lot of work on the part of our teams, which I congratulate", said Liudmila Climoc, CEO of Orange Romania.
Virtual PPA (vPPA) is a long-term contract signed between a renewable energy developer and an interested buyer. This approach covers future trading risks related to price fluctuations on the energy market (hedging) and, at the same time, guarantees (through the transfer of guarantee of origin certificates from the developer) that the energy allocated to the buyer comes from sources renewable.
"The vPPA type contracts, such as the one signed between Engie Romania and Orange, are an example of our group's strategy to offer customers green electricity and provide them with predictability on energy costs, being a good example of how, in a market with high price fluctuations such as that of energy, companies can ensure, through this type of contract, that they carry out an economically sustainable activity and from the perspective of environmental objectives", said Nicolas Richard, CEO of Engie Romania.
In 2022, Orange Romania launched a 4-year program through which it will install solar panels on 300 network sites and 4 communication interconnection centers and data centers. At this moment, approximately 650 solar panels have been installed on 3 interconnection centers in Constanța, Brașov, and Timişoara and 133 network sites already have functional solar panels.
Also, last year, Orange Romania reduced its energy consumption by approximately 4 GWh through actions aimed at replacing direct current sources at Orange locations with newer generation, more energy efficient ones, decommissioning IT equipment or technologically outdated network, which it replaced with new ones, and implemented solutions to reduce energy consumption on radio equipment according to technology, time and traffic.