Tesco: Largest Corporate Solar PPA is Shaping UK Renewables

In a bid to reach its 2035 carbon neutrality goals, Tesco is working on several key initiatives.

From transitioning to an electric home delivery fleet by 2030 to enhancing energy efficiency in stores with technologies like heat pumps, setting science-based targets to reduce operational emissions by 85% by 2030 to collaborating with suppliers to address supply chain emissions, Tesco is ensuring that all elements of its operations are as efficient and green as possible — and in the not-so-distant future.

As one of the UK’s largest retailers, Tesco is leveraging its dominance and taking responsibility when it comes to renewable energy.

In line with this, it has signed the country’s largest corporate Power Purchase Agreement (PPA) for solar power — not only showcasing Tesco’s commitment to sustainability but also highlighting the growing importance of renewable energy in the corporate world.

Tesco’s agreement the UK’s largest corporate solar PPA

Facilitated by EDF, Tesco’s solar PPA secures 65% of the solar power generation from Cleve Hill Solar Park on the north Kent coast.

Matthew Nunn, Director of EDF Business Solutions, says: “This is being delivered utilising EDF’s unrivalled energy market knowledge and expert trading capabilities, to guarantee a reliable source of clean and affordable energy.

“It’s great to see solar power playing such an important role in Tesco’s progress towards carbon neutrality.”

Cleve Hill is the largest solar and battery storage project ever constructed on UK soil, with a capacity of 373MW. It is set to be operational early next year and could become a cornerstone of the nation’s green energy infrastructure.

The PPA, which secures 65% of the solar power generation from the park, will last 15 years and is a testament to Tesco’s dedication to reducing its carbon footprint and achieving carbon neutrality by 2035. 

The clean energy produced by Cleve Hill is enough to power the equivalent of 144 large stores for a year.

Ken Murphy, Group CEO of Tesco, says: “We’re delighted to be announcing such a significant step in our journey towards carbon neutrality across our own operations by 2035.  

“Cleve Hill solar park, with its ability to generate up to 10% of our UK electricity demand, joins a number of other Power Purchase Agreements we’ve announced over the last five years. 

“With its ability to provide vital energy storage infrastructure, it’s a key part of the renewable energy strategy in the UK and further evidence of our commitment to tackle climate change and source green electricity from innovative projects like this.”

Cleve Hill is being built by Quinbrook. Its Managing Director and UK Regional Lead, Keith Gains, adds: “Tesco’s commitment to Cleve Hill Solar Park underscores the value of the project which has set new benchmarks for UK solar.

“Quinbrook is proud of developing Cleve Hill as we believe it is a blueprint for the next generation of energy transition infrastructure in the UK.”

The Tesco-Cleve Hill agreement is more than just a corporate sustainability initiative — it’s a significant step towards the UK's net-zero ambitions. 

According to the UK Parliament, in the first quarter of 2023, renewables generated 48% of all UK electricity — up from just 7% in 2010. 

Partnerships — like this one with Tesco and its collaborators — are crucial for bridging the investment and infrastructure gap needed to achieve the country’s climate goals.

How is Tesco ensuring it will be carbon neutral by 2035?

On top of the aforementioned environmentally-driven initiatives, Tesco aims to cut food waste by 50% by 2025, achieve deforestation-free status for key commodities and promote sustainable consumption — showcasing a comprehensive approach to reducing its carbon footprint.

As well as this, the supermarket giant is working toward — like many others — reaching net zero by 2050.

To reach this goal, Tesco has developed a comprehensive strategy that spans multiple business areas.

The company has set science-based targets validated by the Science Based Targets Initiative (SBTi), aiming to reduce absolute Scope 1 and 2 emissions from its operations by 85% by 2030 and to cut absolute Scope 3 emissions from energy and industrial sources by 55% by 2032. 

Additionally, Tesco is working with suppliers to implement their own net zero plans by the end of 2023 and aims to achieve 100% deforestation-free status for all primary risk commodities by 2025. 

It doesn’t stop there: Tesco seeks to increase the proportion of healthy food sales to 65% by 2025 and is participating in initiatives like Science-Based Targets for Nature (SBTN) to ensure supply chain traceability.

Ken adds: “With the effects of climate change now upon us, we’re absolutely committed to achieving our target of net zero by 2050. It will require us to transform the way we run our business, from how we produce our products in partnership with our suppliers, how we run our stores and transport network and how we encourage our customers to make healthy and sustainable choices. 

“We’ve led the way on action on climate change, from adopting 100% renewable electricity across the group to scaling innovations in our supply chains. We now must work even harder, in collaboration with our suppliers and partners, to achieve our goals. 

“These ambitious targets, validated by the SBTi, now provide us with a clear roadmap of action over the next ten years and beyond.”

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