Canary Wharf Group takes significant step towards net-zero ambition with support to develop a new UK windfarm – 09.05.23

• Future power purchase agreement will help finance the construction of the new build windfarm with a generating capacity of up to 60MW
• Agreement will provide Canary Wharf Group with over 70% of its electricity consumption, and with the potential to provide much more
• Partnership creates the potential to provide power to all residents, office occupiers and retailers across the 150 acres of Canary Wharf entirely by renewable energy

Canary Wharf Group (“CWG”) has partnered with Brookfield, one of the world’s largest renewable energy providers, to purchase clean energy and support the building of a new wind farm in the UK.

The 15-year power purchase agreement (PPA) will provide CWG with long-term price certainty and progresses its sustainability agenda, through encouraging further movement towards renewable energy across the estate. The agreement will also create a stable revenue stream to support Brookfield’s construction of a windfarm.

In pursuit of its net zero ambition, CWG has already reduced its emissions by 26% across scopes 1 and 2, and in scope 3 downstream leased assets. Tackling emissions from customers is one of the biggest challenges in the property sector, and CWG has been working closely with its customers to increase their own energy efficiency and reduce overall consumption. CWG has procured renewable electricity for the estate since 2012. However, renewable energy PPAs, signed directly with project developers rather than bought through retail energy suppliers, allow CWG more control through guaranteeing the source, and supporting the overall supply of renewable energy in the UK.

Brookfield has over 25,000MW of installed capacity across five continents. It is a leading supplier of renewable PPAs globally and provides energy directly to more than 700 corporate customers. Brookfield is also one of the world’s largest investors in real estate, including a 50% stake in CWG acquired in 2014.

The CWG partnership with Brookfield recognizes that UK energy policy seeks to prioritise domestic investment in renewable energy, which is the cheapest source of energy available, delivering a saving of nearly half compared with electricity generated from gas.[1] 

The proposed windfarm that will supply the Canary Wharf PPA is part of Brookfield’s pipeline of UK wind projects and is expected to be commissioned by 2026. Brookfield was awarded the agreement following a competitive tender process. 

Shobi Khan, CEO, Canary Wharf Group, said: “To be truly sustainable, companies need to help those up and down their value chain to lower their environmental impact, as well as addressing their own emissions. This agreement will not only give Canary Wharf Group more control over emissions from our buildings: in adopting a partnership approach with Brookfield, it creates the certainty required to allow them to invest in construction of this windfarm and increase the UK’s overall supply of renewable energy. It will also create new options for our occupiers to lower their own footprints further.”

Tom O’Brien, Managing Partner and Chief Executive Officer of Brookfield’s Renewable Power & Transition Group said: “We are pleased to be partnering with CWG on this PPA to help develop a new onshore windfarm in the UK. It is important that we continue to invest in and build the infrastructure required to help businesses accelerate their transition to cleaner forms of energy and achieve their net-zero targets. This PPA with CWG ensures their entire estate, including their customers, have access to reliable renewable power, with flexibility to expand as the CWG estate grows.”

[1] Levelised cost of energy (LCOE) of £46/MWh (Megawatt-hour) for onshore wind and £44/MWh for large-scale solar, compared with £85/MWh for gas CCGT (Combined Cycle Gas Turbine) with and without carbon capture technology – a 46% and 48% saving respectively. Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/911817/electricity-generation-cost-report-2020.pdf (Page 25)

ENDS

For further information, please contact:

Press Office
Canary Wharf Group plc
T: 020 7418 2166
E: pressoffice@canarywharf.com