H&M and Alight sign PPAs for three Swedish solar parks

Solar developer Alight signed long-term power purchase agreements with H&M Group to build three ground-mounted solar parks totaling 23 MW in Sweden, expected to generate at least 24 GWh annually. The deal illustrates how corporate PPAs can secure renewable supply, a model relevant to Indian apparel and manufacturing firms pursuing decarbonization of their electricity sourcing.

Alight, a European solar developer and independent power producer, entered long-term power purchase agreements with H&M Group to establish three new solar parks in Sweden, located in Blekinge (13 MW), Södermanland (6 MW) and Halland (4 MW). Construction has begun in Blekinge, with the other two starting this spring and all three expected operational by early 2025. Collectively the projects will generate a minimum of 24 GWh of clean electricity annually, equivalent to the power consumption of over 4,800 homes. Alight will own and manage the parks after completion.

The agreements directly benefit H&M Group, securing a renewable electricity source for the global fashion retailer, and extend an existing partnership with Alight that began with a December 2022 PPA for a 100 MW solar park in Hultsfred, Sweden, a joint venture with French renewable energy company Neoen. The model is most relevant to large energy-consuming corporates and retailers, particularly in textiles and consumer goods, that seek to decarbonize Scope 2 electricity emissions through contracted off-site renewable generation rather than direct asset ownership.

Companies monitoring corporate renewable procurement should note the structure: long-term PPAs paired with developer ownership of the asset, allowing the offtaker to claim clean electricity without capital expenditure on generation. Indian firms with sustainability commitments can track the timeline, with the Blekinge park under construction and the remaining two starting this spring toward an early 2025 operational date. Stakeholders should also watch the broader H&M-Alight pipeline, including the 100 MW Hultsfred project, for scale benchmarks in apparel-sector decarbonization.

Key figure — Combined output: minimum 24 GWh of clean electricity annually