Commercial, Sourcing Renewables, Wind - August 9, 2019
Gap Inc. signs VPPA, sets 100% RE goal
Global apparel retailer Gap Inc. announced on August 9 that it has signed a 90-megawatt VPPA for the Aurora Wind Project, marking one of the largest offsite renewable energy contracts by an apparel retailer. The deal 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 percent compared to 2015.
“We have a responsibility to reduce our climate impact. 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,” said Art Peck, president and chief executive officer, Gap Inc., in a statement.
The 12-year VPPA was signed with Enel Green Power North America, which will build, own, and operate the Aurora Wind Project located in Williams and Mountrail counties in North Dakota. The project, which will enter operation by the end of 2020, will Gap Inc. 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. Gap Inc. was advised on this VPPA by Schneider Electric Energy & Sustainability Services, who assisted the company in its project selection and negotiations.
The statement noted that while Gap Inc. operates more than 3,300 stores worldwide, the vast majority of its distributed store fleet are leased sites located in buildings and malls owned by landlords, limiting the company’s ability to implement onsite renewable energy assets.
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