Virgin Media O2's PPA To Secure Renewable Energy

Virgin Media O2 has entered into a decade-long power purchase agreement (PPA) with The Renewables Infrastructure Group (TRIG).

The agreement will see around 15% of Virgin Media O2's total electricity demand supplied by renewable sources starting from April 2026.

The move addresses the increasing energy consumption within the telecommunications sector, caused by rising data usage and network expansion.

Under the terms of the deal, TRIG is set to provide renewable electricity sourced from two of its onshore wind farms: Earlseat, located in Scotland and Garreg Lwyd in Wales.

The combined generating capacity of these two sites is approximately 50MW. The PPA is a component of Virgin Media O2’s broader strategy to achieve net-zero carbon emissions throughout its value chain by the year 2040, which is a decade ahead of the UK government's target.

Securing energy and operational resilience

The agreement provides Virgin Media O2 with a degree of price certainty in a period of sustained energy market volatility, a key consideration for large-scale network operations.

By securing a long-term energy supply directly from renewable generators, Virgin Media O2 can potentially mitigate exposure to future price fluctuations in the wider energy market.

Dana Haidan, Chief Sustainability Officer at Virgin Media O2, says: "By purchasing long-term renewable energy at scale, we're not only cutting carbon but protecting our network from future energy shocks. Power Purchase Agreements offer price certainty, operational resilience and long-term value."

The arrangement supports Virgin Media O2’s policy to utilise renewable energy at all locations where it has control over the electricity bill, which Virgin Media O2 states will bolster network resilience.

Progress on environmental targets

The PPA aligns with Virgin Media O2's Better Connections Plan, its sustainability strategy, which establishes environmental targets for its operations and supply chain.

Virgin Media O2 has reported a 56% reduction in its Scope 1 and 2 emissions and a 19% decrease in Scope 3 emissions when measured against a 2020 baseline.

In recognition of its efforts in this area, Virgin Media O2 received an 'A' rating from CDP in their Supplier Engagement Assessment for the 2024 disclosure cycle.

Additionally, Virgin Media O2 secured a Bronze Medal from EcoVadis for its overall sustainability performance.

"Virgin Media O2 is committed to growing responsibly, delivering resilient digital infrastructure that supports the planet, our customers and the communities we serve," Dana explains.

A growing trend in corporate procurement

The deal between Virgin Media O2 and TRIG is part of a growing trend where large corporations procure long-term renewable energy through direct agreements rather than relying on the open market.

TRIG, a London-listed renewable energy infrastructure investment company, manages a portfolio of wind, solar and battery storage projects across six European markets with a net operational capacity of 2.3GW.

Minesh Shah, Managing Director at TRIG, says: "We're pleased to be supplying Virgin Media O2 with clean energy as it advances its sustainability strategy through this long-term Power Purchase Agreement. Such agreements present an attractive opportunity to help businesses access renewable electricity while delivering secure, long-term revenue streams for our shareholders – a structure that benefits both commercial decarbonisation and sustainable investment."

For Virgin Media O2, the agreement supports the UK's transition to a low-carbon economy while providing a hedge against future energy price changes.