Aurivo entered into a power purchase agreement (PPA) model to finance a new €5m solar project in at its premises in Roscommon.

The long-term agreement means the co-operative can secure renewable electricity for its Ballaghaderreen facility without making a significant upfront capital investment, with developer VERDE Energy Group funding and delivering the project.

Construction has now begun on the 5MW ground-mounted solar farm, which will include 7,784 solar panels. Once completed in late 2026, the installation is expected to generate 4.7 million kWh of electricity annually, reducing the site's reliance on grid power and cutting carbon emissions by an estimated 1,053 tonnes each year.

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PPA model

VERDE Energy Group, which is backed by Octopus Energy Generation, said the PPA model is becoming an increasingly attractive option for businesses looking to decarbonise while avoiding the large capital costs traditionally associated with on-site renewable energy projects.

Under the arrangement, Aurivo will purchase the electricity generated by the solar farm over the life of the agreement, providing certainty over future energy costs, while allowing the co-operative to invest capital in its core business rather than energy infrastructure.

Mannok recently announced a similar arrangement with Activ8 Solar Energies.