Allego Signs Two New 10-Year Power Purchase Agreements For 100 GWh Of Energy per Year, Further Mitigating Input Cost Volatility And Advancing Sustainable Mobility

Author: Benzinga Newsdesk | November 03, 2023 08:36am

 

Allego has secured a low energy price for ten years, which is expected to stabilize its overall long-term input cost base.

• As a pure-play charge point operator and its own energy provider, Allego can use these PPAs to optimize the competitively priced energy it procures through renewable sources before delivering it directly to electric vehicle (EV) drivers when they top up at an Allego charger.
• The ten-year agreements include renewably sourced energy from a solar park that is expected to be operational in January 2024, and a wind farm that is expected to be completed in January 2025.

Allego N.V. ("Allego" or the "Company") (NYSE:ALLG), a leading pan-European public electric vehicle fast and ultra-fast charging network, today announced that it has signed two power purchase agreements (PPAs) totaling 100 gigawatt hours (GWh) of energy per year with Energy Solutions Group, the largest independent green energy producer in the Benelux region. The application of these PPAs is expected to enable Allego to stabilize its input cost base and minimize the impact of commodity price volatility on its operational and margin profile while sourcing renewable solar and wind energy.

PPAs are also another way to reinforce Allego's efforts in its mission to provide 100% renewable energy to its growing EV charging network. As it seeks to achieve this goal, Allego has developed an entire ecosystem within the organization to procure, monitor, and distribute clean energy to its network, including its demand and supply optimization software, making it a pure-play charge point operator that is also an energy provider. This framework permits Allego to have more control over the energy it receives and delivers to its network, ultimately providing a better user experience for the EV driver.

Mathieu Bonnet, Chief Executive Officer at Allego, says, "PPAs have proven to be an effective and competitive tool to achieve two key objectives for Allego: providing 100% renewable energy to our network and minimizing input cost volatility. We secured these PPA contracts at favorable fixed prices, which in turn increases the overall attractiveness and margin of our energy procurement strategy. By sourcing local, green energy to our network, we expect to be able to maximize the industry-wide shift to electric mobility. These PPAs we have signed with Energy Solutions Group are tangible progress in our journey for a more sustainable future for all."

Consumers and businesses have been impacted by the instability in energy prices in recent years, causing EV drivers to be more selective in where they charge their cars. By procuring energy through PPAs, Allego has committed to reducing this impact of volatile commodity prices by directly sourcing renewable energy to its chargers. In less than a year since signing its first PPA, Allego has contracted six renewable energy parks through the utilization of PPAs, with the aim of supplying 80% of its energy from PPAs and the remaining 20% through local green certificates. Allego will continue to commit to sustainable mobility solutions, actively driving the transition to electric transportation by providing clean, reliable, and cost-effective energy solutions to its ever-expanding network of EV charging stations.

The long-term agreements with Energy Solutions Group will source the energy from a wind farm, located in Strijensas, the Netherlands, and a solar park, located in Maarheeze, the Netherlands. The PPAs are expected to be operational by January 2024 and January 2025, respectively.

Posted In: ALLG