AIB has entered into a multimillion-euro deal to secure up to 80 per cent of its future electricity needs from two solar farms that renewable energy group NTR is developing in Co Wexford.
The two planned solar farms, at Enniscorthy and Gorey, will between them deliver 21.4 gigawatt hours (GWh) of new renewable energy to the Irish grid, according to AIB.
The solar farms, which have full planning permission, will be built next year. The agreement will ensure the bank has a sustainable and secure energy supply at a fixed price for 15 years, it said. A spokesman for the bank declined to comment on the financial terms of the deal.
“This will provide up to 80 per cent of AIB Group’s electricity needs to service its retail and office network of over 270 properties while providing welcome additional generation capacity into the national grid at a time when the country faces energy supply challenges,” the bank said.
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“While Ireland is typically associated with wind as an energy resource, solar too can play a key part in the renewables mix. Given that visible light drives solar panels, Ireland’s long summer days, which stretch well into the evening, particularly in the sunny southeast of the country, make solar an important resource for Ireland to develop.”
The bank, led by chief executive Colin Hunt, had disclosed in its 2021 annual report, published last March, that it was “finalising” a so-called corporate power purchase agreement (PPA) to directly source renewable solar energy for its operations to reduce emissions. The company has committed to source all of its power requirements from certified renewable energy sources by the end of this decade.
NTR chief executive Rosheen McGuckian said: “Corporate PPAs such as this are an integral part of the solution to drive the clean energy transition across our European markets, but it is particularly gratifying to sign a PPA in our home market with AIB who are leading the charge for Irish companies in embracing this way to access clean affordable power.”
The development comes as AIB holds its sixth annual sustainability conference on Monday, with speakers including actor Cate Blanchett, global goodwill ambassador for UNHCR, the United Nations refugee agency, and Jane Goodall, the world-renowned ethologist and conservationist.
Mr Hunt set a target in late 2020 for green or climate-transition lending to account for 70 per cent all new lending within a decade.
Green lending, including discount-rate mortgages for homes with top energy ratings, renewables and funding to companies for specific projects accounted for almost a fifth of all AIB’s new facilities last year and was the fastest-growing part of its overall loan book.
