Gap signs wind energy agreement to power its stores
The clothing company Gap signed a 90 Megawatt (MW) virtual power purchase agreement (VPPA) for the Aurora Wind Project in North Dakota with Enel Green Power North America.
The 12-year agreement is one of the largest offsite renewable energy contracts ever signed by an apparel retailer. It will enable the company to reach its 2020 goal to reduce greenhouse gas (GHG) emissions for its owned and operated facilities by 50 percent compared to 2015. Further, the company set a goal to reach 100 percent renewable energy across its global owned and operated facilities by 2030.
“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,” Art Peck, president and chief executive officer, Gap Inc, said.
Gap Inc. operates more than 3,300 stores around the world, but the vast majority are leased and owned by landlords. The agreement with Enel Green Power allows Gap to aggregate its distributed electricity load in the U.S. and purchase wind energy for over 1,500 retail stores. The wind electricity output purchased by Gap is expected to total approximately 374 gigawatt hours (GWh) each year.
Gap was advised on this agreement by Schneider Electric Energy & Sustainability Services.
“Gap Inc. has shown tremendous and ongoing sustainability leadership in the apparel industry,” John Powers, VP of strategic renewables for Schneider Electric, said. “Pursuing an offsite VPPA was an ideal solution to address the company’s unique real estate footprint, which lacks owned rooftop space, and achieve its carbon reduction targets while creating both business and environmental value. We want to congratulate Gap Inc. on this important project that will contribute to a clean energy future for all.”
Enel Green Power North America is a leading owner of renewable energy plants in North America with projects operating and under development in 24 US states and two Canadian provinces. It will own and operate the Aurora Wind Project located in Williams and Mountrail counties in North Dakota. It is expected to be operational by the end of 2020.
“This partnership with Gap Inc. demonstrates how global brands are increasingly turning to us for our extensive expertise in creating flexible and customized solutions that address unique renewable energy needs,” Antonio Cammisecra, global head of Enel Green Power, said. “With partnerships like this one, which create immediate returns while furthering emission reduction strategies, Enel Green Power once again reaffirms the strong bond between sustainability and value creation.”
Earlier this year, Gap joined with Bloomberg, Cox Enterprises, Salesforce, and Workday to sign a joint 42.5-megawatt renewable energy deal. Previously, Gap Inc. signed a 20-year power purchase agreement with SunPower for 3 megawatts of onsite solar at its distribution center in Fresno, Calif.
