Pan-European electric vehicle (EV) charge point operator Allego NV (NYSE:ALLG) has entered into two new power purchase agreements (PPAs) to source renewable electricity from Energy Solutions Group, which produces green energy in the Benelux region.
Under the terms of the contracts, Allego will buy 100 GWh of electricity per year from a wind farm in Strijensas and a solar park in Maarheeze, the Netherlands. The PPAs are expected to become effective by January 2024 and January 2025, and will both run for 10 years.
Allego said that the agreed low energy price will help stabilise its overall long-term input cost. The company explained that procuring energy through PPAs allows it to reduce and minimise the impact of volatile commodity prices. It has committed to supplying 80% of its energy from PPAs and intends to rely on local green certificates for the remainder.
The EV charging network signed its first PPA a year ago and has since contracted six renewable energy parks, it added.