How Renewable PPAs are Powering VMO2’s Energy Strategy

Virgin Media O2 has strengthened its long-term energy procurement strategy through a new 10-year solar Power Purchase Agreement (PPA) with renewables investor egg Power, reinforcing its transition towards low-carbon electricity.

Volatility in global energy markets has pushed businesses to rethink how they source electricity, placing greater emphasis on resilience, cost certainty and sustainability.

Renewable PPAs are increasingly central to that shift, offering companies fixed-price access to clean power while reducing exposure to wholesale price fluctuations.

Under the agreement, VMO2 will source electricity from a new solar farm in Suffolk, east England, which is scheduled to become operational in 2027. The project is expected to supply around 5% of the company’s overall energy demand.

This latest deal builds on VMO2’s existing renewable portfolio, including its 2025 agreement with The Renewables Infrastructure Group for wind energy.

Together, these contracts could deliver approximately 20% of the company’s electricity needs, while supporting UK renewable generation and grid stability.

Aligning energy procurement with net zero

The solar PPA forms a key part of Virgin Media O2’s roadmap to eliminate carbon emissions across its value chain by 2040, with energy sourcing playing a central role in that transition.

"This agreement with egg Power is the latest step in Virgin Media O2's journey to achieve net zero emissions by the end of 2040,” says Mark Hardman, Director of Finance Operations at Virgin Media O2.

“We are committed to growing and operating our business in a way that's good for people and the planet, where we are cutting carbon, securing renewable energy on a long-term basis, and sourcing renewable energy generation from the UK."

Meeting telecoms’ rising power demand

egg Power, a wholly owned subsidiary of Liberty Growth, is focused on supplying renewable energy to sectors with rapidly increasing electricity requirements, including telecoms and digital infrastructure.

VMO2 itself operates as a 50/50 joint venture between Liberty Global and Telefónica.

Demand for power across these sectors is accelerating, driven by the expansion of AI technologies and surging data consumption. This is intensifying the need for scalable, reliable and low-carbon electricity solutions.

"This agreement is a further endorsement of our mission to become the clean energy supplier of choice for telcos and digital infrastructure providers in the UK,” says Ilesh Patel, Head of egg Power at Liberty Global.

“With funding in place for more projects, we are excited about the next chapter as we continue to deliver reliable, price-predictable renewable power that strengthens the UK's energy security, underpins long-term growth and meets the needs of large energy users."

Energy at the core of responsible business

VMO2’s evolving responsible business strategy reflects a broader view of sustainability, placing energy resilience and infrastructure reliability at its centre. The company is moving beyond traditional ESG framing to address systemic challenges linked to energy, climate and digital connectivity.

Dana Haidan, Chief Sustainability Officer, recently told Sustainability Magazine that the concept of sustainability can sometimes limit strategic thinking.

“We are evolving from a traditional sustainability programme into a broader responsible business strategy,” Dana explained.

“Because the issues we’re addressing – like climate resilience, digital wellbeing, resource scarcity, and many more – go far beyond the traditional boundaries of ESG. These are not peripheral issues; they are central to the long-term success of a digital infrastructure company."

Telecoms accelerate PPA adoption

While corporate PPAs have historically been dominated by heavy industry and technology firms, telecoms operators are becoming increasingly active participants in renewable energy markets.

According to RE-Source, nearly 2.5GW of PPA capacity was contracted by European telecoms companies between 2013 and October 2023.

Major players including Telecom Italia, Vodafone and Deutsche Telekom are expanding their renewable procurement strategies as energy demand and decarbonisation pressures grow.