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SNCF Énergie and RES sign a contract to purchase renewable electricity in France

19/06/2020

SNCF Energie, a subsidiary of SNCF Voyageurs, and RES have signed a very long-term direct purchase contract for renewable electricity (Green Corporate PPA). It is a new large-scale contract signed between a producer of renewable energy and a large independent consumer in France. With a capacity of nearly 40 megawatts over 15 to 20 years, this Green corporate PPA is among the largest in Europe, by its production volume, and demonstrates SNCF's commitment to the energy transition.

After signing in June 2019 the largest “Green Corporate PPA 1” in France with Voltalia for a capacity of 143 MWp, SNCF Energie, a wholly-owned subsidiary of SNCF Voyageurs, is continuing to develop its very long-term energy purchases renewable and contracts with RES, a French and international player in renewable energies. This new contract for the direct purchase of renewable electricity, with a duration of 15 to 20 years, covers a power of almost 40 MWp and should produce around 2% of the electricity consumption necessary for the circulation of the all SNCF Voyageurs trains.

SNCF Voyageurs confirms its ambition to reach 40 to 50% of renewable energies in its electricity consumption mix for train traction by 2025. To achieve this, SNCF Energie is thus engaged in negotiations with various developers and producers of renewable energy. The objective is to contract within 1 to 2 years, which come another 3 to 5 times the volumes already acquired through these first two Green Corporate PPAs.

New solar power plants for the climate

This contract allows the construction and operation of solar power plants from 2021, which will be linked directly to SNCF Energie for its direct needs. Unlike the purchase of electricity produced by already old renewable power stations, long-term purchase indeed allows the construction of new renewable production infrastructures, and thus has a real, direct and lasting effect on the energy transition. Long-term commitment is also a necessary condition for the competitiveness of the sale price of electricity.

These solar parks, with a total capacity of 40 MWp, will be located in the Alpes de Haute-Provence, South region - Provence-Alpes-Côte d'Azur. They will be put into service between 2021 and 2023. Annual production will amount to nearly 60 GWh, which corresponds to the consumption of around 24,000 French households2, that is to say the population of cities like Rodez, Les Ulis or Bègles.

Two major players fully committed to responsible energy

The SNCF group is continuing its ambitious and proactive policy of consuming responsible energy, while already being the operator of passenger and freight transport that emits the least greenhouse gases in the mobility sector (11% of passengers and goods in France transported for less than 1% of the sector's greenhouse gas emissions).

RES, a historic player engaged in the energy transition for 38 years, including more than 20 years on the French market, is one of the leaders in the renewable energy sector. To date, RES has built more than 18 GW of wind and solar projects and has now contracted more than 1.6 GW of over-the-counter electricity sales contracts worldwide.

“With this new signature, we confirm our ambition to develop these“ Green Corporate PPA ”contracts up to 20% of our traction electricity consumption, to reach more than 40% of electricity from renewable sources in our mix of electrical supply within 3 to 4 years. This is in line with the desire of the entire SNCF group and rail workers to offer ever more sustainable mobility thanks to an ever cleaner train. We are proud to contribute with this contract to the creation of additional photovoltaic solar capacities in France, which will benefit the transition of the French energy mix" specifies Christophe Fanichet, Chairman and CEO of SNCF Voyageurs .

"As part of the permanent competitive dialogue program" PPA Energies Renouvelables "led by Bénédicte Maury, Managing Director of SNCF Energie , and with this new contract signed with the producer of renewable electricity RES, we are taking another big step forward on our path to Responsible Energy which can be summed up in four major ambitions: energy efficiency and sobriety, greening, decarbonization and creation of societal value” declares Olivier Menuet, President of SNCF Energie, Director of Carbon Energy of SNCF Voyageurs .

“RES is proud to make a lasting commitment to the energy transition alongside SNCF Énergie, by allowing the construction of new solar capacities outside the calls for tenders from the Energy Regulation Commission. This agreement once again demonstrates the attractiveness and competitiveness of solar energy in France. The signing of this OTC agreement is an additional step in the pursuit of our vision of a future where everyone has access to low-carbon and affordable energy. The signing with SNCF Energie is a first for RES in France and, we hope, the start of a long series to come,” said Sébastien Dubois, CEO of RES .

  1. Green Power Purchase Agreement: direct purchase contract for electricity by which a company obtains its supplies directly from a solar or wind power plant built for this purpose and made possible by this long-term contract.
  2. According to figures from the Energy Regulatory Commission.

KeyFacts Energy: Renewable Energy news

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