The Voltalia-Renault Clean Energy Partnership to decarbonise vehicle manufacture in France wins the IJGlobal ESG Award 2023 for industrial impact.

This award celebrates the signing in November 2022 between renewable energy developer Voltalia (advised by Linklaters) and Renault Group (advised by Herbert Smith Freehills) of the largest corporate PPA ever signed in France.

The contract covers a total capacity of 350MW, representing the production of some 500GW hours per year, and last for 15 years – an unprecedented commitment in France in terms of power.

Renault Group has been on the energy transition path for more than 10 years and with this CPPA it heralds its intention to accelerate the decarbonisation of its plants in France.

The agreement with Voltalia will enable Renault Group to cover up to 50% of the electricity consumption of the manufacturer's production activities in France in 2027, including the electricity consumption of Cléon, as well as all the sustainable electricity needs of the ElectriCity hub, Europe's largest EV production centre which plans to produce 500,000 vehicles per year by 2025.

With its Renaulution strategic plan, Renault Group confirms its commitment to achieving net zero carbon emissions from its ElectriCity hub plants in France by 2025, in Europe by 2030 and worldwide by 2050.

Voltalia will install 100MW of photovoltaic panels at its sites in France starting in 2025. The capacity made available to Renault by Voltalia will increase steadily over the following years, reaching a total of 350MW by 2027.

ESG components

The corporate power purchase agreement (CPPA) between Voltalia and Renault primarily focuses on environmental impacts but also achieves broader social impacts.

These include job creation through the development, construction, and operation of renewable energy projects, which are usually erected in rural areas of France with fewer job opportunities than urban areas, hence supporting local and regional economies and communities.

By investing in renewable energy, both Voltalia and Renault contribute to economic growth in the green economy, diversifying energy sources, and enhancing energy security.

The partnership demonstrates a commitment to corporate social responsibility (CSR), actively addressing climate change, promoting sustainable practices, and fostering a culture of sustainability in the corporate sector... not to mention leadership in the automotive sector.

The CPPA increases the supply of renewable energy, expanding access to clean energy for communities, businesses, and industries, reducing energy poverty, and improving overall quality of life.

The collaboration also leads to increased awareness of renewable energy technologies and their benefits, inspiring educational institutions to incorporate sustainability and clean energy topics into their curriculums, fostering a knowledgeable workforce for future environmental challenges.

By reducing greenhouse gas emissions and promoting clean energy sources, the PPA improves overall air quality, providing positive health impacts for communities.

The social impacts of the PPA include job creation, economic growth, CSR promotion, clean energy access, educational opportunities, and health benefits.